CLEAN ENERGY AUSTRALIA

CLEAN ENERGY AUSTRALIA REPORT 2019 REPORT 2019 We put more energy into your future

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4 Introduction 6 2018 snapshot 12 Jobs and investment in renewable energy by state 15 Project tracker 16 Policy void risks momentum built by Renewable Energy Target 18 Industry outlook: small-scale renewable energy 19 Industry outlook: large-scale renewable energy 20 State policies 22 Australian Capital Territory 24 New South Wales 26 Northern Territory 28 Queensland 30 South Australia 32 Tasmania 34 Victoria 36 Western Australia 38 Employment 40 Renewables for business 43 International update 44 Electricity prices 46 Transmission 48 Energy reliability 50 Technology profiles 52 Bioenergy 54 Battery storage 56 Hydro and pumped hydro 58 Solar: Household and commercial systems up to 100 kW 66 Solar: Medium-scale systems between 100 kW and 5 MW 68 Solar: Large-scale systems larger than 5 MW 72 Wind 78 Emerging technologies

Cover image: Griffith Solar Farm, New South Wales INTRODUCTION

Kane Thornton Chief Executive, Clean Energy Council

Forget the original Snowy Hydro Energy storage also made significant The vision of an project or the 2012 rooftop solar boom gains in 2018, with several new Australia powered – nothing comes close to the year utility-scale batteries installed across that our industry had in 2018. And the country. The grid support services by clean energy is the good news is that there is much provided by these batteries were more to come if we can just keep the demonstrated by the performance of now well and truly momentum going. the Hornsdale Power Reserve, which saved consumers up to $50 million Many of the records set by the in sight. in costs associated with keeping the industry in 2017 were smashed in power system stable. 2018. Investment in large-scale clean energy projects doubled to more than Unfortunately, the politics around $20 billion in 2018 as 38 projects energy reached another new low in were completed throughout the year. 2018, with the Federal Government And with 87 large-scale renewable opting to tear itself apart rather than energy projects under construction or implement its own National Energy financially committed at the beginning Guarantee. While the 2019 Federal of 2019, the outlook for large-scale Election will create another pivotal renewables has never been brighter. year for clean energy in Australia, we have thankfully reached a point Not to be outdone, rooftop solar also where politics isn’t as existential to the surpassed the record that it set in 2017, industry as it once was. with 1.55 GW of solar installed on Australian households and businesses The Federal Government did take in 2018. The number of Australian some steps in the right direction at the households with rooftop solar passed beginning of 2019 though, approving 2 million in 2018, meaning that one Snowy 2.0 and backing Tasmania’s in five Australian households have Battery of the Nation project. The now turned to solar to reduce their construction of these significant electricity bills. projects could complement our rapidly-

Image: Hornsdale Wind Farm, South Australia

4 ABOUT US

growing wind and solar plants, further The Clean Energy accelerating the transition to a clean Council is the peak energy future. body for the renewable Electricity prices remained stubbornly energy and energy high in 2018, but thankfully relief is in storage industry in sight. The considerable amount of new wind and solar capacity that has entered Australia. We represent the market in recent years has already and work with hundreds begun to reduce wholesale prices. The of leading businesses cost of new wind and solar – even operating in solar, wind, when backed by storage – is now lower hydro, bioenergy, energy than the cost of new coal generation, meaning that wholesale prices should storage, geothermal continue to fall as more clean energy and marine along with comes online. more than 6000 solar While there is still much to be done, and battery storage particularly in relation to improving installers. the grid and energy market and how it integrates renewable energy and energy storage, 2018 was a phenomenal year. We are committed to accelerating The vision of an Australia powered by the transformation of Australia’s clean energy is now well and truly in energy system to one that is smarter sight, and it is with great optimism and cleaner. that I look forward to another The Clean Energy Council leads and ground-breaking year for the supports the growth of the clean Australian clean energy industry. energy industry in Australia by: • shaping policy • developing standards and regulations and ensuring the integrity of the industry • promoting the industry • providing a range of valuable services to our members, customers and partners.

4 5 2018 SNAPSHOT

100% increase in investment in large-scale energy projects in 2018

14.5 GW of new energy generation under construction or financially committed at the end of 2018

21% of total electricity generation from renewable sources – its highest ever level

Image: Musselroe Wind Farm, Tasmania

6 In 2017 records were broken. In 2018 they were smashed.

By any measure, 2018 was a remarkable energy projects under construction or year for the Australian clean energy financially committed at the end of industry. 2018, it is clear the sector will meet the RET well ahead of schedule. Investment in large-scale renewable energy projects was double that of the Electricity generated by renewables record-breaking 2017, increasing from increased to 21 per cent of total power $10 billion in 2017 to $20 billion in generation in 2018 to reach its highest 2018. By year’s end, 14.5 gigawatts ever level. Clean energy now powers the (GW) of new generation was under equivalent of more than 10 million construction or financially committed – Australian homes, which is more than equivalent to more than four times all the households currently in Australia. the energy output of the Liddell With high electricity prices never far Power Station. from the headlines, Australian New large-scale wind and solar projects households and businesses continued to are being built more efficiently than ever embrace rooftop solar in record numbers before, and renewable energy continues to help manage costs in 2018. By to be the lowest-cost type of new energy December, the CER confirmed that a generation that can be built, attracting whopping 2 million households – one in local and international capital. five – now host rooftop solar. On Incentives provided by the federal average, six solar panels were being Renewable Energy Target (RET) and installed per minute in Australia in 2018, other state policies propelled investment with the commercial sector growing in 2018. by 45 per cent and the residential sector just a whisker behind, with a In January, the Clean Energy Regulator 43 per cent rise. (CER) confirmed that the large-scale Renewable Energy Target of 33,000 Despite falling project costs and the gigawatt hours (GWh) by 2020 would be achievement of record-breaking met1 – a significant milestone for the milestones, the year brought with it industry. With 87 large-scale renewable some frustration and disappointment

1 Clean Energy Regulator, media release, Record year of investment means Australia’s 2020 Renewable Energy Target will be met, 23 January 2018, http://www.cleanenergyregulator.gov.au/RET/Pages/News%20and%20updates/ NewsItem.aspx?ListId=19b4efbb-6f5d-4637-94c4-121c1f96fcfe&ItemId=468

6 7 2018 SNAPSHOT CONTINUED

45% growth in commercial solar installations throughout 2018

1 in 5 Australian households now have rooftop solar

6 solar panels installed every minute in 2018

Image: Griffith Solar Farm, New South Wales for industry. Towards the end of 2017, retailers and a rushed plan to underwrite Despite falling costs and record-breaking there was cautious optimism across the new investment in ‘firmed generation’ investment, fears remain that the sector that, despite its shortcomings, the – what Prime Minister Scott Morrison billion-dollar economic boom from National Energy Guarantee (NEG) had referred to on radio as “fair dinkum renewable energy, particularly in attracted broad enough support to power”. Meanwhile, Federal Labor said regional Australia, could come to an end deliver the energy policy certainty many it would revive the NEG should it win if the energy policy debate is left to had long called for. the 2019 Federal Election, as well as languish unresolved. At the close of support a 50 per cent renewable energy 2018, a bipartisan solution on energy But by August 2018, as yet another target by 2030. policy remained elusive. prime minster fell victim to the decade-long Energy Wars, hope of a In December, a benchmark study from breakthrough had disappeared. The new the CSIRO and Australian Energy Market Morrison-led Coalition declared the NEG Operator confirmed that the cost of new dead, abandoning any notion of wind and solar – even with six hours of emissions reduction and instead storage included – is lower than the cost favouring a ‘big stick’ attack directed at of new coal generation.2

2 CSIRO, media release, Annual update finds renewables are cheapest new build power, 21 December 2018, https://www.csiro.au/en/News/News-releases/2018/Annual-update-finds-renewables-are-cheapest-new-build-power

8 ANNUAL ELECTRICITY RENEWABLE GENERATION BY GENERATION IN 2018 TECHNOLOGY TYPE

Renewables 21% Hydro 35.2% Fossil fuels 79% Wind 33.5% Small-scale solar PV 19.6% Bioenergy 7.1% Large-scale solar PV 3.9% Medium-scale solar PV 0.8%

RENEWABLE ENERGY GENERATION3

TECHNOLOGY GENERATION PERCENTAGE PERCENTAGE EQUIVALENT NUMBER OF (GWh) OF RENEWABLE OF TOTAL HOUSEHOLDS POWERED OVER GENERATION GENERATION COURSE OF THE YEAR

Hydro 17,002 35.2% 7.5% 3,699,211

Wind 16,171 33.5% 7.1% 3,518,452

Small-scale solar PV 9452 19.6% 4.2% 2,056,656

Bioenergy 3412 7.1% 1.5% 742,418

Large-scale solar PV 1875 3.9% 0.8% 407,940

Medium-scale solar PV 367 0.8% 0.2% 79,898

TOTAL 48,279 100% 21.3% 10,504,576

3 Green Energy Markets. Electricity generation equivalent in households is calculated using a weighted national average consumption level of 4.596 MWh (from Australian Energy Market Commission, Residential electricity price trends 2018, 21 December 2018, https://www.aemc.gov.au/sites/default/files/2018-12/2018%20Price%20Trends%20-%20Final%20Report%20-%20CLEAN.PDF)

8 9 2018 SNAPSHOT CONTINUED VARTA Energy Storage Systems The demand on energy storage systems may vary depending on the type of building, however the desire for reliability and safety applies for all technical solutions. RENEWABLE ENERGY PENETRATION BY STATE4

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TAS 95.9% WA 16.2% SA 53.0% NSW 15.0% VIC 20.6% QLD 9.5%

RENEWABLE ENERGY PENETRATION BY STATE4

STATE TOTAL GENERATION FOSSIL FUEL TOTAL RENEWABLE PENETRATION OF (GWh) GENERATION (GWh) GENERATION (GWh) RENEWABLES

TAS 12,083 499 11,584 95.9%

SA 13,506 6354 7152 53.0%

VIC 48,014 38,106 9908 20.6%

WA 18,950 15,876 3073 16.2%

NSW 69,085 58,730 10,355 15.0%

QLD 65,066 58,860 6206 9.5%

NATIONAL 226,703 178,424 48,279 21.3%

4 Green Energy Markets. Total generation includes NEM and WEM data and small-scale solar PV. The ACT is part of the NSW region and there is no data available for the small NT grid.

10 VARTA Energy Storage Systems

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CASE STUDY NEG JOINS CARBON PRICE ON THE CLIMATE SCRAPHEAP

The start of 2018 held some promise his leadership. It didn’t work, and Scott Election, but with a higher emissions that the Turnbull Government’s National Morrison was subsequently elected reduction target for electricity of 45 Energy Guarantee (NEG) might deliver Prime Minister by the Liberal Party. per cent by 2030. It also left the door the coherent policy solution that the open to pursue direct clean energy In September, Prime Minister Morrison industry had been calling for. investment options if the trend towards confirmed that the NEG was dead. partisanship continued. Then-Energy Minister, Josh Frydenberg, While organisations across the business, secured broad support for the NEG from energy and community sectors grieved, With energy shaping up to be a key business groups, the energy industry new Energy Minister, Angus Taylor, battleground in the 2019 Federal and consumers, while negotiations announced new measures to try to reign Election, the decade-long wait for a continued with the states and territories. in retail prices, plus a plan to underwrite long-term national energy policy may new investment in firmed generation finally be decided – for better or for However, just when the finish line was in capacity – including coal. worse. sight, Prime Minister Turnbull was forced to abandon the emissions component Recognising the broadly-held support of the NEG in an attempt to quell a for the NEG, Labor adopted the policy revolt within his own party and save and will take it to the 2019 Federal

10 11 JOBS AND INVESTMENT IN RENEWABLE ENERGY BY STATE

12 THE CONSTRUCTION BOOM FOR LARGE-SCALE RENEWABLE ENERGY PROJECTS (PROJECTS UNDER CONSTRUCTION OR FINANCIALLY COMMITTED) 45 Megawatts $83m Investment 395 Megawatts 170 Jobs $945m Investment 500 Jobs

2260 Megawatts $3119m Investment 2310 262 Jobs Megawatts $580m Investment 358 * As at 15 March 2019 Jobs THE CONSTRUCTION BOOM FOR LARGE-SCALE RENEWABLE ENERGY PROJECTS (PROJECTS UNDER CONSTRUCTION OR FINANCIALLY COMMITTED) 45 Megawatts $83m Investment 14,841 170 4941 Jobs Megawatts $10,003m Investment 24.5b 4681 Jobs

3800 13,233 Megawatts $4714m Investment 2320 Jobs

3140 Megawatts $5034m Investment 2894 Jobs PROJECT TRACKER

RENEWABLE ENERGY PROJECTS COMPLETED IN 2018

TECH STATE OWNER PROJECT CAPACITY (MW) Wind NSW Partners Group and CWP Renewables Sapphire Wind Farm 270 Wind QLD RATCH Mt Emerald Wind Farm 181 Solar NSW Neoen Coleambally Solar Farm 150 Wind VIC ACCIONA Mt Gellibrand - Stage 1 138 Solar QLD APA Group Darling Downs Solar Farm 138 Solar QLD FRV Clare Solar Farm 128 Solar QLD Sun Metals Sun Metals Solar Farm 124 Wind NSW Infigen Energy Bodangora Wind Farm 113 Solar VIC Foresight Solar Bannerton Solar Farm 110 Solar VIC Wirsol Energy Wemen Solar Farm 110 Solar QLD Lighthouse Solar Emerald Solar Park 90 Solar QLD Edify Energy Whitsunday Solar Farm 69 Solar QLD Edify Energy Hamilton Solar Farm 69 Solar NSW Neoen Parkes Solar Farm 66 Solar VIC Wirsol Energy and Edify Energy Gannawarra Solar Farm - Stage 1 60 Solar NSW First Solar Manildra Solar Farm 56 Wind VIC Tilt Renewables Salt Creek Wind Farm 54 Solar QLD Genex Kidston Solar Project - Stage 1 50 Wind QLD Windlab and Erusus Energy Kennedy Energy Park - Wind 43.5 Solar NSW Neoen Griffith Solar Farm 36 Wind VIC Windlab Kiata Wind Farm 31 Wind VIC Pacific Hydro Yaloak South Wind Farm 29 Solar NSW Neoen Dubbo Solar Hub 29 Bioenergy QLD MSF Sugar Tableland Sugar Mill 24 Solar WA APA Group Emu Downs Solar Farm 20 Solar QLD Overland Sun Farming Hughenden Solar Farm 20 Solar VIC Impact Investment Group/Australian Solar Swan Hill Solar Farm 19 Group Solar QLD Canadian Solar Longreach Solar Farm 17 Solar QLD Windlab and Erusus Energy Kennedy Energy Park - Solar 15 Solar QLD Conergy Lakeland Solar and Storage Project 13 Solar QLD Ydot Projects Dunblane Solar Farm 11 Solar NSW New Gullen Range Wind Farm Gullen Range Solar Farm 10 Solar WA Carnegie/Lend Lease Northam Solar Farm 10 Wind VIC BayWa r.e. Maroona Wind Farm 7 Solar SA SSE Australia Whyalla Solar Farm - Stage 1 6 Solar QLD Epho Brisbane Airport 6 Solar SA Renew Power Group Peterborough Solar Farm 5 Solar QLD Canadian Solar and Scouller Energy Normanton Solar Farm 5

Image: Griffith Solar Farm, New South Wales

15 Over the past decade, the POLICY VOID federal Renewable Energy RISKS MOMENTUM Target (RET) has been critical in supporting the BUILT BY RENEWABLE clean energy industry to build the skills and ENERGY TARGET experience necessary to improve efficiency, develop in scale and reduce project costs. The success of the RET in encouraging major new investment has shown the merit of developing an effective national policy and leaving it alone to let the market work.

Image: Kidston Renewable Energy Hub, Queensland

16 As the RET nears its 2020 end date borne out through the high energy signal for investors. Whether new and with no federal policy to replace it, prices paid by Australian consumers investment is driven by the states or fears remain that all the momentum and businesses, and a series of the Commonwealth will depend on the the industry has built will be lost. The ad hoc, and largely ineffective, Federal Election outcome and the Clean Energy Council’s December government interventions attempting goodwill of all sides of politics to finally Clean Energy Outlook surveyed to reduce them. deliver a bipartisan solution. approximately 60 senior executives Thankfully, states and territories have The Council of Australian Governments representing businesses with a stepped in to fill the void with their Energy Council remains the key forum combined net worth of more than $17 own initiatives to encourage jobs and for building consensus on a national billion. This group confirmed that while investment in new clean energy. energy strategy, but in 2018, voting confidence was high in the short term, But the imperative for coordinated was often divided along party lines. the lack of federal energy and climate policy at the federal level is becoming However, NSW Energy Minister, Don policy continued to rate as an area of urgent, as the need to reduce Harwin – a member of the Liberal high concern. emissions and address climate change Party – could not contain his While clean energy investment does becomes increasingly compelling. frustration when he branded his not need new subsidies, it does require federal colleagues “out of touch”5 Federal Labor has promised more long-term energy policy certainty. The ahead of the December meeting. ambition on climate and renewables decade-long failure of successive than the status quo. A proposed target federal governments to implement a of 50 per cent renewable energy by lasting national energy policy is being 2030 would provide a strong market

5 K Nguyen, B Wylie and C Briggs, ABC News, Morrison climate policy out of touch says NSW energy minister, 19 December 2018, https://www.abc.net.au/news/2018-12-19/morrison-climate-policy-out-of-touch-says-nsw-energy-minister/10633474

16 17 INDUSTRY OUTLOOK SMALL-SCALE RENEWABLE ENERGY

1.55 GW 2 M+ $540 of rooftop solar installed homes with rooftop solar average saving on a yearly across Australia in 2018 power bill

SMALL-SCALE SOLAR RECORDS BROKEN IN 20186

Record capacity registered in a month 177 MW (November) Record capacity registered in a week 62 MW (w/c 17 December) Image: Rooftop solar installation, Victoria Record average system size in a month It was another record-breaking year A series of new state government 7.7 kW (December) for rooftop solar in 2018, with 1.55 GW programs suggest that 2019 will Record commercial volume in installed in the small-scale market across again eclipse the records set in 2018. a month Australia. This was a substantial increase An example of this is the Victorian 55 MW (December) on the previous high of almost 1.1 GW of Government’s Solar Homes Package, rooftop solar installed in 2017. which extends the solar incentive to Record proportion of STC renters and offers eligible consumers volume that was commercial In early December, the industry interest free loans – making it even more 35 per cent (June) celebrated another milestone, with affordable to add rooftop solar. the number of households enjoying Record monthly the benefits of rooftop solar topping This is good news for solar installers and volume in states 2 million. NSW recorded the highest electricians looking to reskill. In 2018, the WA (December), NSW, SA number of annual installations, rooftop solar industry was responsible and VIC (November) increasing from 43,113 households in for 6267 FTE jobs, and a large proportion Record year in states 2017 to 58,324 in 2018. of these were accredited by the Clean (number of installs) Energy Council. There were 5864 With an average solar household saving QLD, NSW, SA, VIC, WA, accredited installers at the end of 2018, approximately $540 every year on ACT and NT and this number is expected to rise their power bills, it’s no wonder that sharply in 2019. States with strong policy consumers are choosing to invest in commitments to household rooftop rooftop solar. Systems are also getting solar and batteries increasingly larger, with the average system installed require installers to be accredited now 7.13 kW, a substantial increase from for customers to be eligible for the the 1.34 kW average system installed relevant government rebates. back in 2009.

6 Sunwiz, 2018 - Australian Solar’s record-smashing year. In eye-watering charts, http://www.sunwiz.com.au/index.php/2012-06-26-00-47- 40/73-newsletter/441-2018-australian-solar%E2%80%99s-record-smashing-year-in-eye-watering-charts.html

18 INDUSTRY OUTLOOK LARGE-SCALE RENEWABLE ENERGY

87 567,828 10,800+ large-scale projects under solar modules installed at jobs created from construction or financially Neoen’s 150 MW Coleambally large-scale renewable committed at the Solar Farm construction in 2018 end of 2018

Image: Walkaway Wind Farm, Western Australia

The boom in large-scale renewable Wind also prospered in 2018, with To meet demand, industry will put an energy construction in 2018 shows no nine new wind farms commissioned, increased focus on skills and training, sign of slowing down in the year ahead, including the 270 MW Sapphire as well as continue to try to lure workers with large-scale solar projects leading Wind Farm in NSW – the state’s from the construction and traditional the charge. largest. Another 24 wind farms, with energy industries. a combined capacity of 5.69 GW, A total of 87 large-scale projects These record levels of activity will also were under construction or financially were under construction or financially require the Clean Energy Council to committed at the end of 2018. committed at the end of 2018. continue working with the Australian With so many projects in development, Energy Market Operator and others to An average of more than two competition will remain high for streamline regulatory arrangements large-scale solar farms (over 5 MW) were construction resources and workers, and connection processes. The need commissioned each month in 2018, which is great news for the regional for new transmission infrastructure to adding 1442 MW of new capacity. areas where most projects are based. service new renewable energy projects Projects are getting larger and more More than 10,800 direct jobs were also presents unique challenges for efficient, which is helping to reduce created from the large-scale renewable the pace of large-scale renewable costs. Neoen’s 150 MW Coleambally energy construction boom in 2018 – development. Solar Farm, completed in October, with another 3000 in operations and boasts a record 567,828 solar PV maintenance. The indirect benefits modules, claiming the mantle of the of these jobs and investment include largest fully operational solar farm increased demand for accommodation in Australia – for now. and services in regional towns.

18 19 Image: Hornsdale Wind Farm, South Australia

20 STATE POLICIES Most state governments have worked to fill the void left by the absence of a national climate and energy policy. While a strong, consistent national policy remains preferable to navigating a patchwork of individual jurisdictions, state and territory policy measures have been crucial in driving new investment. State government investment is also supporting innovative renewable energy project trials, making solar more accessible for medium- and low-income households and supporting the roll out of large-scale battery storage.

20 21 STATE POLICIES AUSTRALIAN CAPITAL TERRITORY

KEY PROGRAMS, POLICIES AND INITIATIVES

• 100% clean energy by 2020 • Z ero net emissions by 2045 • T ransition to Zero Emissions Vehicles Action Plan

The ACT has the most ambitious The last project to be built under the renewable energy target in the country scheme was Union Fenosa’s Crookwell and remains on track to deliver on its 2 Wind Farm, which was officially goal of 100 per cent clean energy, well opened in November 2018. before its 2020 deadline. By the end of The Transition to Zero Emissions 2018, nearly 78 per cent of Canberra’s Vehicles Action Plan states the electricity came from renewable ACT Government’s newly-leased sources.7 It has also set a nation- fleet passenger vehicles will be zero leading target to achieve zero net emissions by 2021. Electric vehicle greenhouse gas emissions by 2045. charging infrastructure will be The government continues to roll incorporated into new multi-unit out programs as part of its 2011-20 and mixed-use developments, and Sustainable Energy Policy,8 which incentives will be offered to increase includes the nation’s first reverse the uptake of electric bikes in place auction scheme for renewable energy. of cars.9

7 K Burgess, Canberra Times, The cost on your power bill of the ACT’s switch to renewable energy, 3 December 2018, https://www.canberratimes.com.au/politics/act/the-cost-on-your-power-bill-of-the-act-s-switch-to-renewable-energy-20181130- p50jdg.html 8 ACT Government, ACT Sustainable Energy Policy: 2011-2020, September 2011, https://www.environment.act.gov.au/__data/assets/pdf_ file/0003/581664/EDS_ACT_Sustainable_Energy_Policy_FA_web_A.PDF 9 Cities Power Partnership, Councils take top gong at national climate awards, 19 October 2018, https://citiespowerpartnership.org. au/2018/10/19/councils-take-top-gong-at-national-climate-awards/

22 77% of the ACT’s electricity came from renewable sources in 2018

Image: Ararat Wind Farm, Victoria

22 23 STATE POLICIES NEW SOUTH WALES

KEY PROGRAMS, POLICIES AND INITIATIVES

• Zero net emissions by 2050 • C limate Change Fund Strategic Plan to increase renewable capacity to 10,000 MW by 2021 • T ransmission Infrastructure Strategy to improve access and develop poles and wires • $ 55 million Emerging Energy Program to support the commercialisation of dispatchable technology

Unlike many other states, New South the state’s level of renewable energy energy bills by installing rooftop solar.12 Wales does not have a renewable capacity to more than 10,000 MW by Late in 2018, the government energy target to support large-scale 2021. In 2018, the government also announced the $55 million Emerging renewable energy development. announced that all 24 goals set out as Energy Program to support the In 2018, the amount of electricity part of its Renewable Energy Action commercialisation of dispatchable generation from renewables in NSW Plan had been realised.10 technology including solar, batteries was 15 per cent (or 10,355 GWh), Programs such as the Clean Energy and pumped hydro. Part of the behind all states except Queensland. Knowledge Sharing Initiative are program will fund pre-investment The state’s target of zero net leveraging private sector investment to studies into 24 energy projects – emissions by 2050 has helped to drive deliver innovative pilot projects.11 mostly pumped hydro – with a total other policy initiatives, such as the The Home Energy Action Program generation capacity of around government’s Climate Change Fund is also helping 4500 vulnerable 7000 MW on assets owned and Strategic Plan, which aims to double households to take control of their operated by WaterNSW.13

10 Energy NSW, media release, NSW plan delivers clean energy results, 4 December 2018, https://energy.nsw.gov.au/nsw-plan-delivers-clean- energy-results 11 Energy NSW, Clean Energy Knowledge Sharing Initiative, https://energy.nsw.gov.au/commercial-business/sustainability/knowledge- sharing-initiative 12 E nergy NSW, media release, Renters reap benefits of solar revolution, 6 August 2018, https://energy.nsw.gov.au/renters-reap-benefits- solar-revolution 13 WaterNSW, media release, NSW Government unveils WaterNSW landmark pumped hydro clean energy project, 12 December 2018, https://www.waternsw.com.au/about/newsroom/2018/nsw-govt-unveils-waternsw-landmark-pumped-hydro-clean-energy-project

24 15% of NSW’s electricity came from renewable sources in 2018

A Transmission Infrastructure Strategy planning system towards the end of of large-scale energy storage to the announced in November also outlined 2018, totalling around 18,500 MW National Electricity Market. a plan to develop the poles and and representing close to $26 billion in In readiness for the state election wires needed to bring the growing potential investment – the highest on in March 2019, the Clean Energy percentage of renewables online.14 record and enough to power all NSW Council put out a statement households.15 NSW had 24 large-scale energy of policy recommendations, projects under construction or After two years of feasibility studies, including setting a strong target financially committed at the end Snowy 2.0 was officially approved by for renewable energy and a of 2018, 17 of which were large- the Snowy Hydro board in December reverse auction program similar to scale solar. The capacity of all these 2018 and the Federal Government in that of other states. Both parties projects is 3467 MW. Energy and February 2019. Upon completion, the made substantive clean energy Utilities Minister, Don Harwin, said the project will increase the capacity of the announcements in mid-February 2019, government had almost 90 large- iconic Snowy Hydro Scheme by 2000 showing that they have recognised scale renewable energy projects in its MW and provide up to 350,000 MWh the importance of the issue to voters.16

Image: Griffith Solar Farm, New South Wales

14 Energy NSW, Transmission Infrastructure Strategy, https://energy.nsw.gov.au/renewables/clean-energy-initiatives/transmission- infrastructure-strategy 15 Energy NSW, media release, NSW plan delivers clean energy results, 4 December 2018, https://energy.nsw.gov.au/nsw-plan-delivers-clean- energy-results 16 Clean Energy Council, media release, Major parties in NSW taking charge on solar and storage ahead of election, 12 February 2018, https://www.cleanenergycouncil.org.au/news/major-parties-in-nsw-taking-charge-on-solar-and-storage-ahead-of-election

24 25 STATE POLICIES NORTHERN TERRITORY

KEY PROGRAMS, POLICIES AND INITIATIVES

• 50% renewable energy by 2030 • R oadmap to Renewables report • S upply and feed-in tariffs under review to encourage behind-the-meter energy storage • F irst large-scale solar project approved by the government • $ 5 million program for rooftop solar in schools

The Northern Territory Government construction of the $8.3 million 5 MW In October, the government approved has set itself a target of 50 per cent Alice Springs Battery Energy Storage the territory’s first large-scale solar renewables by 2030. System through government-owned project near Katherine. The 25 MW corporation, Territory Generation. solar plant is a joint development by Following the release of its Roadmap Australian company Epuron and Island to Renewables report in late 2017, A review of supply and feed-in tariffs Green Power. Government-owned the government has taken several is underway to encourage behind- utility, Jacana Energy, will buy energy steps to lift the territory’s use of the-meter energy storage for those from the solar plant under a long-term clean energy, including initiating with rooftop solar and stimulate power purchase agreement.18 electricity market reforms to enhance greater take-up of energy efficient A $5 million program also supports the the delivery of lower-cost and technologies. uptake of rooftop solar in NT schools. reliable power17 and supporting the

17 Northern Territory Government, media release, Creating local jobs for the future through cheaper, cleaner and more reliable power, 8 October 2018, http://newsroom.nt.gov.au/mediaRelease/27210 18 Energy Matters, NT approves 25 MW solar power plant on road to 50% renewables target, 10 October 2018, https://www.energymatters.com.au/renewable-news/northern-territory-solar-plant-renewables/

26 25 MW solar plant to be constructed near Katherine

Image: Yulara Solar Project, Northern Territory

26 27 STATE POLICIES QUEENSLAND

KEY PROGRAMS, POLICIES AND INITIATIVES

• 50% renewable energy by 2030 • $1.16 billion Powering Queensland Plan • Solar Farm Guidelines delivered in 2018 • $97 million for solar and energy-saving devices in schools

Queensland was the renewable energy committed nationwide, 26 per cent in Queensland. The government also construction capital of Australia are in Queensland, highlighting the committed $97 million over three years in 2018, with more than a third of rapid pace of the industry’s expansion. to install solar panels and other energy- projects commissioned in 2018 located To help manage this, the government saving devices in the state’s schools.21 in the Sunshine State. This is in keeping delivered its Solar Farm Guidelines in Queensland also made progress in with the Queensland Government’s 2018, which are designed to ensure energy storage, offering low interest target of 50 per cent renewable energy that large-scale solar projects maintain loans and grants to households and by 2030, which was reaffirmed in 2018 a strong social licence to operate. businesses looking to install solar and/ through the $1.16 billion Powering The Clean Energy Council and the or battery systems22 and announcing Queensland Plan.19 wider industry contributed to the the nation’s first battery storage development of these guidelines. Large-scale solar projects are driving database to enable network operators this growth, which are being supported There was big news in wind too, with to better manage demand peaks. by the Queensland Government’s construction beginning on the The new government-owned energy Solar 150 program – a commitment to 453 MW Coopers Gap Wind Farm, generator CleanCo got a step closer, support up to 150 MW of solar power located about 250 km west of Brisbane. with a mandate to deliver 1000 MW of generation in Queensland.20 Developed by AGL, the wind farm will renewable energy, focusing on flexible produce approximately 1,510,000 MWh Of the 38 large-scale renewable energy dispatchable generation.23 of renewable energy annually, making it projects completed across Australia in one of Australia’s largest. Overall, this activity helped deliver 2018, 17 were in Queensland. These 6206 GWh of renewable energy completed projects added 1004 MW It was also a big year for small-scale generation in 2018, or 9.5 per cent of of new capacity and more than 2030 solar in Queensland, with 54,201 total generation – an increase of new jobs during construction. Of the systems installed in 2018 – nearly 150 1.5 per cent on the previous year. 87 large-scale solar projects that systems per day. Six of the nation’s are under construction or financially top ten solar postcodes were again

19 Department of Energy and Water Supply, Powering Queensland Plan: an integrated energy strategy for the state, https://www.dnrme.qld. gov.au/energy/initiatives/powering-queensland 20 B usiness Queensland, Solar 150 - Queensland’s large-scale solar investment program, https://www.business.qld.gov.au/industries/mining- energy-water/energy/renewable/projects-queensland/solar-150 21 Queensland Government, media release, Solar panels on school roofs to save more than $10 million a year, 13 March 2018, http://statements. qld.gov.au/Statement/2018/3/13/solar-panels-on-school-roofs-to-save-more-than-10-million-a-year 22 Queensland Government, media release, Battery grants drive next renewable wave, 18 November 2018, http://statements.qld.gov.au/ Statement/2018/11/18/battery-grants-drive-next-renewable-wave 23 Queensland Government, media release, CleanCo to make power bills cheaper, 30 August 2018, http://statements.qld.gov.au/ Statement/2018/8/30/cleanco-to-make-power-bills-cheaper

28 9.5% of Queensland’s electricity came from renewable sources in 2018

CASE STUDY SUNSHINE STATE EMBRACES RENEWABLE ENERGY ON A GRAND SCALE

500 MW - enough to power around developed with investment from 170,000 homes. the company’s Powering Australia Renewables Fund. Due to be It follows Genex Power’s $1 billion completed in 2019, Coopers Gap project to convert the Kidston will have a capacity of 453 MW and Goldmine, 400 km inland of Townsville, produce around 1,510,000 MWh of into 250 MW of pumped hydro renewable energy, making it one of the supported by 270 MW of solar and 150 country’s largest wind farms. MW of wind. This would make Kidston the first project in the world to combine In Central Queensland, Pacific Hydro pumped hydro with large-scale solar and Lacour Energy have announced and wind. Stage 2 of the project plans to develop a hybrid wind and secured a $516 million loan from solar farm at Clarke Creek, 150 the federal government’s Northern km north-west of Rockhampton. Coal mining and investment may have Australia Infrastructure Fund in June, While the project is currently in the snared a lot of the headlines in 2018, putting it on track to commence the feasibility phase, if constructed, it will but there’s a big story shaping up next phase of construction in 2019. include more than 800 MW of wind about Queensland’s growing appetite generation, up to 400 MW of solar for large-scale clean energy projects, In another world first, the 1.5 GW power and a battery energy storage with North Queensland and the Harlin Solar Farm, announced in May facility. Darling Downs leading the charge. 2018, will stretch across a 2055 hectare site east of Harlin, which is near As the second-largest state by area in The largest project to begin Ipswich in the state’s south-east. The Australia, and with some of the best construction in North Queensland proposal, by Sunshine Energy Markets, renewable energy resources in the in 2018 was the first stage of Pacific was given conditional approval by the world, it’s no surprise that Queensland Hydro’s Haughton Solar Farm, located local council in November 2018. is increasingly hosting projects on a 60 km south-west of Townsville. grand scale. Once completed, the site will house In the Darling Downs, construction approximately 1 million solar panels is underway on AGL’s Coopers Gap with a generating capacity of up to Wind Farm, an $850 million project

Image: Kidston Renewable Energy Hub, Queensland

28 29 STATE POLICIES SOUTH AUSTRALIA

KEY PROGRAMS, POLICIES AND INITIATIVES

• $200 million towards an interconnector with New South Wales • $100 million household battery program • $50 million Grid Scale Storage Fund

30 53% of South Australia’s electricity came from renewable sources in 2018

The Liberal Party, led by Steven its abundant renewable energy – plus Large-scale renewable energy projects Marshall, was elected to power in a $100 million household battery announced in the state in 2018 March 2018, following 16 years of program offering grants to 40,000 included Infigen Energy’s $38 million Labor government in the state. The South Australian households. In lithium-ion battery energy storage Liberal Party’s election campaign September, the green light was given system. The 25 MW / 52 MWh battery focused on affordability, reliability, to German energy storage giant at Lake Bonney Wind Farm in South better value for taxpayers and Sonnen to begin assembling and Australia’s south-east was supported stronger connections between South manufacturing its world-leading by the South Australian Government Australia and the National Electricity home battery technology in Adelaide, and ARENA. Market. creating around 430 manufacturing More than half of South Australia’s and installation jobs. Big ticket items included funding electricity was generated by renewable of $200 million towards an The government also launched the energy for the first time in 2018, interconnector with NSW – allowing $50 million Grid Scale Storage Fund reaching 7152 GWh – 53 per cent of the state access to additional to accelerate investment in utility- total generation. electricity when needed and to export scale energy storage in the state.

Image: Hornsdale Wind Farm, South Australia

30 31 STATE POLICIES TASMANIA

KEY PROGRAMS, POLICIES AND INITIATIVES

• B attery of the Nation plan could double Tasmania’s renewable capacity to 5000 MW • P lanning continues for two renewable energy parks, which will include wind and battery storage

Tasmania is close to 100 per cent clean and thousands of jobs in regional also coincided with the Federal energy, thanks to its extensive hydro Tasmania over 10 to 15 years.25 Government providing $56 million to power network and a commitment fast track the development of The plan is dependent on investment to becoming a net exporter of the project.27 in at least one more Bass Strait renewables. interconnector to strengthen the links Wind continues to play an important In 2018, 95.9 per cent of the state’s between Tasmania’s hydro network role in the state’s clean energy mix, generation (11,584 GWh) was provided and the rest of the National Electricity providing around 10 per cent of by renewables, the bulk of which came Market. Analysis released in December generation. In 2018, Goldwind’s from hydro power. Hydro Tasmania confirmed that such a measure could Cattle Hill Wind Farm commenced continues to invest in modernising and unlock hundreds of megawatts of construction. The 150 MW project will upgrading its substantial assets, with latent dispatchable capacity in the consist of 48 turbines and is expected a view to becoming the renewable Tasmanian hydropower system and to become fully operational in late energy battery for Australia.24 make it available to a transforming 2019. 28 The 112 MW Granville Harbour National Electricity Market.26 Wind Farm, being developed by The Battery of the Nation plan, Vestas, is also due to be operational by supported by ARENA, could double In February 2019, TasNetworks the end of 2019. Planning continues the state’s renewable energy capacity released its Initial Feasibility Report for UPC Renewables’ 150 MW Jim’s from 2500 MW to 5000 MW through on the development of a second Bass Plain and 450 MW Robbins Island pumped hydro storage, wind farms Strait interconnector, Marinus Link. renewable energy parks, both of which and upgrades to existing hydro power The report found Marinus Link to be will include wind and battery storage. facilities. Early modelling shows that technically feasible and economically the Battery of the Nation would viable under a number of plausible create billions of dollars of investment scenarios. The release of the report

24 Tasmanian Climate Change Office, Advancing our renewable energy capability, http://www.dpac.tas.gov.au/divisions/climatechange/ tasmanias_climate_change_action_plan_20172021/advancing_our_renewable_energy_capability 25 Hydro Tasmania, media release, Battery of the Nation - an integral part of national energy planning, 17 July 2018, https://www.hydro.com. au/news/media-releases/2018/07/17/battery-of-the-nation---an-integral-part-of-national-energy-planning 26 Hydro Tasmania, media release, Unlocking Tasmania’s energy capacity through interconnection, 12 December 2018, https://www.hydro.com. au/news/media-releases/2018/12/12/unlocking-tasmanias-energy-capacity-through-interconnection 27 Australian Renewable Energy Agency, media release, Prime Minister commits $56 million to Marinus Link progress, 25 February 2019, https://projectmarinus.tasnetworks.com.au/2019/02/initial-feasibility-report-released/ 28 Goldwind, Cattle Hill Wind Farm, http://www.cattlehillwindfarm.com/

32 95.9% of Tasmania’s electricity came from renewable sources in 2018

Image: Catagunya Power Station, Tasmania

32 33 STATE POLICIES VICTORIA

KEY PROGRAMS, POLICIES AND INITIATIVES

• 50% renewable energy by 2030 • Zero net emissions by 2050 • $ 1.3 billion Solar Homes program to provide support to 720,000 households over 10 years to install solar

Renewable generation in Victoria with an interest-free loan. For the first technical and economic reached 9908 GWh in 2018, time, the scheme was also extended viability of increasing representing a record 20.6 per cent to renters, who have traditionally transmission network of the state’s total generation. been locked out of the benefits of capacity in western Victoria. If Victoria has legislated renewable solar. Safety was a priority under the approved, the new transmission energy targets of 40 per cent by 2025 scheme, with rebates only available to capacity will unlock more of and zero net emissions by 2050. In customers using Clean Energy Council the state’s significant wind November, the Labor Government accredited installers and approved resources. A final decision on committed to extending the target products. the RIT-T is expected in to 50 per cent by 2030, providing mid-2019. Victorians welcomed the Labor additional investment certainty to party’s ambitious policies in energy renewable energy companies. and other areas, delivering Labor The incumbent Labor Government a landslide victory. went into the November election Nine large-scale renewable energy campaign with a series of new clean projects were completed in Victoria energy policies, including the $1.3 in 2018, four solar and five wind. The billion Solar Homes program, which largest of these was stage one of the will provide support to 720,000 Mount Gellibrand Wind Farm, which households over 10 years to install has a capacity of 138 MW. solar panels, solar hot water or household storage. Eligible Victorian The Australian Energy Market households can receive a rebate of up Operator is currently undertaking to $2225 to install rooftop solar and a Regulatory Investment Test for pay the remainder back over four years Transmission (RIT-T) to assess the

34 20.6% of Victoria’s electricity came from renewable sources in 2018

Image: Portland Wind Energy Project, Victoria

34 35 STATE POLICIES WESTERN AUSTRALIA

KEY PROGRAMS, POLICIES AND INITIATIVES

• P owerbank trial to integrate a shared battery storage service into the network • R ooftop solar trading scheme • 1 00 kW of solar installed in remote Aboriginal communities

Western Australia’s renewable energy and is a key part of what will become energy generator and retailer generation increased from 14 per cent one of the largest wind-solar precincts Synergy’s plan to enter into a joint in 2017 to 16.2 per cent in 2018. In in the country (at 230 MW) once the venture with the Dutch Infrastructure the absence of a renewable energy or 130 MW Badgingarra Wind Farm is Fund and Australian industry super zero net emissions target, the state has complete.29 The Northam Solar Farm fund Cbus for the development of traditionally lagged behind the others also began feeding energy into the large-scale renewables projects in in clean energy development. However, grid in 2018, and will supply up to Western Australia.31 The group will new investment in recent years is now 24,000 MWh every year – enough to deliver stage two of the Greenough translating to projects on the ground. power 4000 average households.30 River Solar Farm south of Geraldton, increasing its capacity from 10 MW to The 20 MW Emu Downs Solar Farm In April, the McGowan Labor 40 MW, as well as the refurbishment north of Perth has been completed Government approved state-owned

29 G Parkinson, RenewEconomy, WA’s largest solar farm - Emu Downs - opens for business, 5 March 2018, https://reneweconomy.com.au/w-a-s-largest-solar-farm-emu-downs-opens-for-business-69933/ 30 S Vorrath, RenewEconomy, Carnegie’s Northam solar farm begins sending energy to the grid in W.A., 22 November 2018, https://reneweconomy.com.au/carnegies-northam-solar-farm-begins-sending-energy-to-the-grid-in-w-a-67530/ 31 WA Government, media release, New renewables projects in WA given green light, 10 April 2018, https://www.mediastatements.wa.gov.au/Pages/McGowan/2018/04/New-renewables-projects-in-WA-given-green-light.aspx

36 16.2% of WA’s electricity came from renewable sources in 2018

of Albany Grasmere Wind Farm. rooftop solar trading scheme, 100 kW It will also scope the development of solar installed in remote Aboriginal of an additional renewable energy communities33 and support for a 1 MW project at the Warradarge Wind Farm. solar farm and 1 MW battery storage system to provide clean energy to the A number of renewable energy coastal town of Onslow in the Pilbara.34 pilot projects supported by the WA Government were announced in WA premier Mark McGowan said the 2018, including the Australian-first government’s demonstrated support PowerBank trial, which will integrate for renewables indicated there was a shared battery storage service into no need to introduce a renewable the network.32 Other projects include a energy target.35

Image: DeGrussa Solar Project, Western Australia

32 WA Government, media release, PowerBank trial to revolutionise bulk battery storage in WA homes, 17 October 2018, https://www.mediastatements.wa.gov.au/Pages/McGowan/2018/10/PowerBank-trial-to-revolutionise-bulk- battery-storage-in-WA-homes.aspx 33 WA Government, media release, Lower electricity bills for Aboriginal communities installing solar, 9 November 2018, https://www.mediastatements.wa.gov.au/Pages/McGowan/2018/11/Lower-electricity-bills-for- Aboriginal-communities-installing-solar.aspx 34 WA Government, media release, Onslow microgrid project Stage One completed, 3 July 2018, https://www.mediastatements.wa.gov.au/Pages/McGowan/2018/07/Onslow-microgrid-project-Stage-One-completed.aspx 35 B Shepherd, ABC News, WA losing Australia’s renewable energy race, Climate Council report finds, 16 October 2018, https://www.abc.net.au/news/2018-10-16/wa-falling-behind-in-generation-of-renewable-energy/10384104

36 37 EMPLOYMENT

3000 construction jobs created in Port Augusta thanks to 13 renewable energy projects 6267 FTE jobs attributable to the rooftop solar industry in 2018 16% increase in the number of CEC accredited installers in 2018

Image: Hornsdale Wind Farm, South Australia

A record year in renewable Renewable energy investment is not in various stages of development.38 energy investment only bringing with it project-level jobs, Similarly, the outback city of Whyalla it’s helping the transformation of some aims to more than treble its population also brought with it fossil fuel-dependent industries and within the next 10 to 20 years39 a jobs boom, with regions. On the back of its $200 million thanks to billionaire Sanjeev Gupta’s 10,850 construction investment in a large-scale solar farm, ambitious plan to upgrade the jobs and approximately Sun Metals was able to announce steelworks, powered by 1 GW of 40 3000 operations and the $300 million expansion of its zinc renewable energy. refinery in Townsville, creating an Rooftop solar is also seeing jobs maintenance jobs across additional 827 jobs in construction growth for installers, with the industry the sector. That’s already alone.37 Port Augusta, a region once responsible for 6267 FTE jobs in 2018. more than the number of on the brink from the closure and The number of Clean Energy Council near collapse of its local coal and jobs in fossil fuel electricity accredited installers increased by 16 36 steel plants, is now home to 3000 generation. per cent in 2018 to reach 5864 – the construction and 200 ongoing jobs, largest number of accredited installers thanks to 13 renewable energy projects ever. Queensland has the highest

36 G M Farr, news.com.au, Renewable energy could offer up to 60,000 Australian jobs, 21 November 2018, https://www.news.com.au/finance/ work/careers/renewable-energy-could-offer-up-to-60000-australian-jobs/news-story/18ddf975618ae782fc94aa39b763dcfb 37 S Vorrath, RenewEconomy, “No need for new coal:” Sun Metals formally opens solar farm in “George” town, 17 August 2018, https://reneweconomy.com.au/no-need-for-new-coal-sun-metals-formally-opens-solar-farm-in-george-town-26798/ 38 A Morton, The Guardian, Life after coal: the South Australian city leading the way, 20 July 2018, https://www.theguardian.com/ environment/2018/jul/20/life-after-coal-the-south-australian-city-leading-the-way

38 CASE STUDY FEMALE LEADERSHIP HIGH ON THE AGENDA

The inaugural recipient, Heidi Sick, is a Section Executive at WSP, where she oversees the diverse and high performing renewable energy team. In early 2019, the Women in Renewables initiative also launched its Speakers Guide. An industry first, the guide is designed to showcase the Images: breadth, expertise and knowledge Left: Allison Hawke Right: Heidi Sick offered by women in the sector to event organisers. Featuring more than 150 women from across the Australian The Clean Energy Council continued the AICD Foundations of Directorship clean energy industry, the guide is an to strengthen its commitment to course. invaluable resource that will further gender diversity in the clean energy The 2019 scholarship was awarded increase gender diversity at clean industry in 2018 through its Women in to Allison Hawke, the Chief Operating energy events. Renewables initiative. Officer at ESCO Pacific. Allison has In November, the Clean Energy Council The program empowers women and played a key role in the development of and some members of the network builds a community of like-minded the Ross River and Finley Solar Farms. participated in a survey led by the advocates, so that they, and the sector, The Clean Energy Council also International Renewable Energy can thrive. partnered with the Monash Business Agency on gender challenges in the Now in its fourth year, the Women in School to offer a second Women global industry. The findings from the Renewables Australian Institute of in Renewables scholarship in 2018. survey will contribute to addressing the Company Directors (AICD) Scholarship The Your Leadership Voice: Women data and knowledge gap on gender in supports a female employee within in Focus program provides female the renewable energy industry. a Clean Energy Council member leaders with tools to overcome various company, Approved Solar Retailer or workplace barriers, with a focus on an Accredited Installer to undertake communication.

number of accredited solar installers EMPLOYMENT IN RENEWABLES at 1571, who helped to install more than 54,200 systems across the state in 2018. The number of accredited installers is expected to rise again in 2019 due to state schemes increasingly requiring the use of accredited installers for customers to obtain rebates on their solar installations. With battery Construction Operations and Solar rooftop storage rebate programs also rolling maintenance installation out in several states – and potentially nationally if Labor wins the 2019 10,851 2987 6267 Federal Election – there will be further training and employment opportunities for installers and electricians.

39 T Fedorowytsch and D Keane, ABC News, Whyalla population set to boom as billionaire Sanjeev Gupta outlines steelworks vision, 10 December 2018, https://www.abc.net.au/news/2018-12-10/whyalla-population-to-boom-as-sanjeev-gupta-embarks-on- upgrades/10599158 40 G Parkinson, RenewEconomy, Whyalla steel city goes green with 1GW of solar and storage, 24 October 2017, https://reneweconomy.com. au/whyalla-steel-city-goes-green-with-1gw-of-solar-and-storage-92904/

38 39 RENEWABLES FOR BUSINESS

Australian businesses finding it difficult to secure 20 affordable long-term contracts for their electricity corporate PPAs increasingly turned to renewable energy in 2018 signed in 2018 through on-site generation and power purchase agreements (PPAs).

It’s a trend happening across the globe, • Carlton & United Breweries signed a with figures from Bloomberg New 12-year PPA with Karadoc Solar Farm 931 MW Energy Finance showing that corporate (112 MW) for 74 GWh per annum as contracted for under PPAs jumped from 6.1 GW purchased part of its 100 per cent renewable corporate PPAs in in 2017 to 13 GW in 2018. In Australia, energy strategy. 20 corporate PPAs were signed in 2018, Australia in 2018 Corporate PPAs have now been contracting for a total of 931 MW and signed in a wide range of sectors – supporting projects with a total capacity led by manufacturing, local councils, of 2600 MW. The key drivers for buyers universities, utilities and state were improving price certainty in volatile governments for their own operations markets, the potential for energy cost 13 GW or infrastructure projects. Victoria is the savings, sustainability or renewable of power purchased leading state, with just under half of the energy targets and improving their through PPAs globally new capacity from corporate PPAs. brand or social licence. Some of the in 2018 major corporate PPAs signed in 2018 However, the corporate PPA sector included: remains an early-stage market. For renewable energy developers, the search • Bluescope Steel negotiated a seven- and transaction costs for finding and year PPA with Finley Solar Farm negotiating with buyers can be high. (133 MW) for 230 GWh per annum. For many buyers, energy procurement • The Commonwealth Bank of is often not a core function, and Australia negotiated a 12-year PPA understanding and negotiating with CWP Renewables to buy 96 corporate PPAs can be complex and GWh per annum. The majority of time-consuming. the power comes from the Sapphire In 2018, the Business Renewables Wind Farm (270 MW) but will be Centre-Australia (BRC-A) was launched supplemented from another solar to support and facilitate the growth of farm or battery to meet a stable corporate PPAs. The BRC-A is a member- baseload requirement. based organisation – the Clean Energy • Sydney Metro negotiated a 15-year Council is a founding member – which PPA with Beryl Solar Farm (87 MW) will help connect buyers and sellers for 134 GWh per annum to offset (through a marketplace platform the entire demand of the NorthWest where developers can promote their metro project. project) and help buyers learn about corporate PPAs through information • The University of New South Wales resources, tools, training bootcamps negotiated a 15-year PPA for up and events. The BRC-A is a collaboration to 124 GWh per annum with the between WWF-Australia (building on Sunraysia Solar Farm (200 MW), the Renewable Energy Buyers Forum), which was ‘sleeved’ into its retail Climate-Kic Australia and the Institute agreement with Origin Energy – for Sustainable Futures, University of part of a growing trend for retailer Technology Sydney. involvement in corporate PPAs.

40 CORPORATE PPAs BY PROJECT CORPORATE PPAs BY TECHNOLOGY DEVELOPMENT STAGE (MW)41 TYPE (MW)41

Operating 24 Wind 339 Confirmed project 155 Solar 593 New project 753

LEADING STATES FOR CORPORATE PPAs (MW)41

450

400

350

300

250

200

150 Corporate PPAs (MW) PPAs Corporate

100

50

0 Victoria Queensland South Australia New South Wales

41 Business Renewables Centre-Australia

40 41 RENEWABLES FOR BUSINESS CONTINUED

CASE STUDY SOLAR POWERED BEER DELIVERS LIQUID SUNSHINE

Image: Bright Brewery, Victoria

The only way to improve on a system. Positioned across 600 square brands, plans to increase its use of deliciously cold beer is to make it from metres of roof, the system uses renewables for electricity from seven cheap, clean energy, right? micro-inverters and the latest smart to 100 per cent by 2025. Using a technology to maximise generating combination of corporate power That’s the view of a growing number capacity. purchase agreements (PPAs) and on- of boutique brewers across Australia site solar, the multinational says it is who, like many small to medium In Sydney, Young Henrys brewers currently well ahead of its 2025 goal. business owners, have adopted solar used crowdfunding to kick start its power to tackle rising energy costs. investment in a 29.9 kW solar array, Carlton & United Breweries (CUB) while Brisbane’s Helios Brewing also announced that it has signed a Stomping Ground Brewing Co., exports about 40 per cent of its PPA with German renewable energy in Melbourne’s inner north, now energy back to the grid thanks company BayWa r.e. to source 74,000 generates 60 per cent of its energy to its solar PV and solar thermal MWh per year for 12 years from onsite with the installation of 357 heating. As part of the company’s the Karadoc Solar Farm in Mildura, solar panels on its brewery and beer holistic approach to environmental Victoria. CUB CEO Jan Craps said hall. Installed in February 2018, sustainability, excess brewers’ grain is certainty of supply and pricing from the 96 kW system generates about also sent to a local pig farm, reducing renewables was crucial in making 130,000 kWh a year. waste to landfill. the switch. In Alpine country in north-east Larger brewers are also making the Victoria, Bright Brewery meets all of switch. Anheuser-Busch InBev, which its energy needs with a 50 kW solar owns more than 400 global beer

42 INTERNATIONAL UPDATE

US$332.1B US$100.1B 109 GW global investment Chinese investment global solar in clean energy in 2018 in clean energy in 2018 capacity in 2018

Global investment in clean energy At US$64.2 billion, the US was the Corporate PPAs are also driving new was US$332.1 billion in 2018 – down second-biggest investor. Bloomberg investment, with global tech giants from a record year in 2017. However, New Energy Finance (BNEF) says leading the way. Facebook sourced much of the decline was due to falling developers in the US have been rushing 2.6 GW of renewable energy from PPAs capital costs, with the amount of wind to finance wind and solar projects to globally in 2018, which is more than the and solar capacity installed around the take advantage of tax credit incentives entire Asia-Pacific region combined. world actually increasing in 2018. China before they expire early next decade, In the US, Facebook, Google and 42 was again the clear leader, with a total lifting investment by 12 per cent. Amazon have a combined market investment of $100.1 billion. This was BNEF’s global benchmark for the cost of share of 35.1 per cent of PPA-driven down 32 per cent on the previous record installing a megawatt of photovoltaic investment.43 year, largely due to a policy shift that capacity fell by 12 per cent, helping solar saw the government restrict access to its to reach a record 109 GW of capacity feed-in tariff for new solar projects. globally in 2018.

GLOBAL RENEWABLE ENERGY INVESTMENT BY TECHNOLOGY44

WIND GEOTHERMAL UP 3% UP 10% US$128.6 BILLION US$1.8 BILLION

SOLAR SMALL HYDRO DOWN 24% DOWN 50% US$130.8 BILLION US$1.7 BILLION

BIOMASS AND WASTE-TO-ENERGY MARINE UP 18% UP 16% US$6.3 BILLION US$180 MILLION

42 V Henze, Bloomberg New Energy Finance, Clean energy investment exceeded $300 billion once again in 2018, 16 January 2019, https://about.bnef.com/blog/clean-energy-investment-exceeded-300-billion-2018/ 43 ReNews, Tech giants ‘lead US corporate PPA charge’, 4 February 2019, https://renews.biz/51304/tech-giants-lead-us- corporate-ppa-charge/ 44 V Henze, Bloomberg New Energy Finance, Clean energy investment exceeded $300 billion once again in 2018, 16 January 2019, https://about.bnef.com/blog/clean-energy-investment-exceeded-300-billion-2018/

42 43 ELECTRICITY PRICES

Electricity prices remained a politically charged issue in 2018, and this is likely to continue as the nation heads into a Federal Election in May. Considering the amount of attention increases in network and environmental given to the issue by politicians and the policy costs, primarily due to the Small- media, it may come as a surprise to scale Renewable Energy Scheme. The some consumers that retail electricity lowering of wholesale costs is likely to prices are expected to fall over the next continue, with a report by the Australian two years.45 Industry Group confirming that new wind and solar projects built under The Australian Energy Market the RET are already starting to reduce Commission (AEMC) released its annual wholesale power prices.47 This will report on residential electricity price accelerate as more come online. $28 trends in late 2018 and the news was predicted positive for most consumers, as well as The news may be small comfort fall in annual the renewable energy industry. for most consumers, however, who continue to pay prices well above the electricity bill It showed that average residential historic average. Energy market reform for the average electricity prices and bills are expected – combined with long-term policy consumer by to decrease between 2019 and 2021, stability – must remain a priority. The July 2020 primarily due to lower wholesale costs. Australian Competition and Consumer This is driven by the 9732 MW of new Commission’s (ACCC) review of the generation and battery storage entering retail electricity market, released in July the National Electricity Market.46 2018, made 56 recommendations to The AEMC found that an average address what it described as a ‘broken consumer will be paying around $28 National Electricity Market’ and bring less than today by July 2020. The ACT, prices down.48 Following its decision Western Australia and Northern Territory to abandon the National Energy are exceptions to this national trend, Guarantee, the Morrison Government with electricity prices and bills expected chose to pursue only a handful of the to increase slightly over the period. ACCC’s recommendations, focusing instead on lowering prices for retail The AEMC also found the decrease in customers and improving reliability. Its wholesale costs more than offsets slight

45 Australian Energy Market Commission, media release, Electricity prices falling overall with variation between jurisdictions, 21 December 2018, https://www.datocms-assets.com/6959/1545288360-2018-price-trends-combined-media-release.PDF 46 Australian Energy Market Commission, media release, Electricity prices falling overall with variation between jurisdictions, 21 December 2018, https://www.datocms-assets.com/6959/1545288360-2018-price-trends-combined-media-release.PDF 47 Australian Industry Group, From worse to bad: Eastern Australian energy prices, p6, July 2018, https://cdn.aigroup.com.au/Reports/2018/ AiGroup_Report_Eastern_Australian_Energy_Prices_July_2018.pdf 48 Australian Competition and Consumer Commission, media release, ACCC releases blueprint to reduce electricity prices, 11 July 2018, https://www.accc.gov.au/media-release/accc-releases-blueprint-to-reduce-electricity-prices

44 pursuit of legislation that would seek to WHAT MAKES UP YOUR POWER BILL, 2017-1849 forcibly break up big power companies that refuse to lower prices was subject to widespread condemnation and has subsequently been put on hold, pending the outcome of the Federal Election. The government also introduced a program which underwrites new investment in ‘firm generation’ to increase supply. Critics of the policy, including the Clean Energy Council, say the scheme is a twisted version of the ACCC’s original recommendation that could create a massive market distortion and further undermine investment confidence. The industry – and others, including the Business Council of Australia and the Australian Industry Group – has always argued that piecemeal approaches Poles and wires $605 to energy market reform are no Generating electricity $536 substitute for sensible, market-based Electricity company costs $162 policy. Without this, consumers reliant Environmental costs $79 on the national grid will be waiting a while longer to see a more substantial reduction in their energy bills.

49 Australian Energy Market Commission, Residential electricity price trends 2018 – National Fact Pack, 21 December 2018, https://www.aemc.gov.au/sites/default/files/2018-12/National%20fact%20pack.pdf

44 45 TRANSMISSION

Geographically dispersed renewable generation is placing a greater reliance on the role of the transmission network. The current transmission system is good network capacity available. It Governments also recognised the was developed to connect large considers how to best develop REZs importance of transmission for the conventional generators to demand in the future that are optimised with energy transformation: centres. As smaller but more numerous necessary transmission developments. • T he NSW Government released renewables generators are installed While the ISP outlines a pathway for its Transmission Infrastructure at the peripheries of the transmission transmission development, there is still Strategy in November 2018, which network to take advantage of higher a need to turn that plan into action. outlines its plan to unlock private quality solar and wind resources, there The Energy Security Board released a sector investment in priority energy is a need to increase the capability series of recommendations in December infrastructure projects. of the transmission system to reduce 2018 to ‘action the ISP’. These included congestion and enhance power system • T he SA Government committed setting up two funds to underwrite flexibility and security. an initial $200 million to fund the expenditures on immediately needed proposed interconnector between SA In July 2018, the Australian Energy projects and for shared connections and NSW, followed by an additional Market Operator released its first costs for REZs, making several $14 million to accelerate early works Integrated System Plan (ISP), which improvements to future ISPs to make on construction of the project. provides an integrated pathway for them investment grade, exploring the development of the transmission industry concerns around connections, • T he Federal Opposition committed system for the National Electricity access and congestion (which the $5 billion to a new Energy Security Market over the next 20 years. The Australian Energy Market Commission and Modernisation Fund that ISP identified three tranches of is also considering concurrently) and would be used to build and transmission investment, ranging from regulatory improvements to fast-track upgrade Australia’s electricity and immediate requirements – such as certain transmission projects. gas transmission and distribution increasing transfer capability between systems. There are also several regulatory NSW, Queensland and Victoria – to approval processes underway for • T he Federal Government pledged longer-term developments such transmission upgrades and new $56 million to the proposed second as strengthening the SnowyLink interconnectors. These include minor interconnector between Tasmania interconnection between Victoria and upgrades to existing interconnectors and the mainland. This has been NSW. between Victoria and NSW and matched by the Federal Opposition. The ISP also identifies and prioritises Queensland and NSW, significant Renewable Energy Zones (REZs), areas upgrades to the Western Victoria where high quality renewable resource network and new interconnectors overlaps with locations where the between SA and NSW and Tasmania transmission network is strong and there and Victoria.

46 Image: High voltage powerlines, Victoria

46 47 ENERGY RELIABILITY

AVERAGE NATIONAL ELECTRICITY MARKET OUTAGE MINUTES PER CUSTOMER VS WIND AND SOLAR CAPACITY50

6000 900

5500 Cumulative wind capacity 800 5000 Cumulative solar capacity Outage minutes 700 4500

4000 600

3500 500 3000 400 2500

2000

Cumulative capacity (MW) 300

1500 200 Average NEM outage minutes per customer 1000 100 500

0 2012 2013 2014 2015 2016 2017 2018 Year

YEAR AVERAGE NEM OUTAGE CUMULATIVE WIND CUMULATIVE SOLAR MINUTES PER CUSTOMER CAPACITY (MW) CAPACITY (MW)

2012 138 3010 10

2013 235 3234 10

2014 156 3962 30

2015 304 4182 185

2016 145 4325 274

2017 274 4812 382

2018 134 5679 1824

Image: Mount Gellibrand Wind Farm, Victoria

48 AVERAGE ANNUAL The national energy system had historically high levels MINUTES OF OUTAGE of reliability in 2018, despite the need for occasional PER CUSTOMER load shedding during periods of extreme heat. BY CAUSE, 2009-1850 A report by the Grattan Institute in from large energy users who are early 2019 confirmed what the clean prepared to shut down or load shed energy industry had known for some when needed in return for a payment.52 time: if anything, the energy system AEMO’s Integrated System Plan will has become more reliable with greater be used to help with efficient network amounts of renewable energy. The investment, ensuring that electricity report found that 98 per cent of from new renewable energy projects outages over the past decade were can be used where it is most needed.53 caused by problems in transporting Wider changes to access rules and and distributing electricity – not the transmission management, flagged technology which generated it. Only 0.1 by the Australian Energy Market per cent of all outages over the same Commission and Energy Security Board period were due to a lack of generation at the end of 2018, will also ensure a Distribution SA blackout capacity on hot days.51 The Grattan more responsive and adaptable energy Transmission Generation shortfall Institute argued that misconceptions system.54 about the impact of renewables The rising number of battery storage OUTAGE MINS % on system reliability can lead to CAUSE projects across the system is also overreactions and knee-jerk policy, enhancing demand management by Distribution 278 97.7 which in turn could see electricity bills improving flexibility. The Hornsdale rise even higher. SA blackout 4 1.5 battery in South Australia, for example, Transmission 2 0.7 Operational challenges remain in responded quickly when the Loy Yang introducing larger amounts of energy coal-fired power plant tripped and Generation 0 0.1 shortfall to the grid and managing system went offline, delivering 100 MW demand. The Australian Energy Market into the national electricity grid in Operator (AEMO) continues to manage 140 milliseconds.55 demand, partly through commitments

50 T Wood, G Dundas and L Percival, Grattan Institute, Keep calm and carry on: managing electricity reliability, 10 February 2019, https://grattan.edu.au/report/ keep-calm-and-carry-on/ 51 T Wood, G Dundas and L Percival, Grattan Institute, Keep calm and carry on: managing electricity reliability, 10 February 2019, https://grattan.edu.au/report/ keep-calm-and-carry-on/ 52 Utility Magazine, How networks are dealing with today’s record temperatures, 25 January 2019, https://utilitymagazine.com.au/how-networks-are-dealing-with-todays-record- temperatures/ 53 Australian Energy Market Operator, Integrated System Plan, July 2018, https://www.aemo. com.au/-/media/Files/Electricity/NEM/Planning_and_Forecasting/ISP/2018/Integrated- System-Plan-2018_final.pdf 54 Energy Security Board, Integrated System Plan: Action Plan, 20 December 2018, http:// www.coagenergycouncil.gov.au/sites/prod.energycouncil/files/publications/documents/ isp%20action%20plan.pdf 55 News.com.au, That’s a record: South Australia’s Tesla battery responds to coal-fired plant failure, 21 December 2017, https://www.news.com.au/technology/environment/thats-a- record-south-australias-tesla-battery-responds-to-coalfired-plant-failure/news-story/ d9e02c0dbf6774ffea948a1b919f3b7f

48 49 Image: Griffith Solar Farm, New South Wales

50 TECHNOLOGY PROFILES

50 51 TECHNOLOGY PROFILES BIOENERGY

Bioenergy is generated from the conversion of solid and liquid biomass products for use as electricity, heat, gas, liquid fuels and bio-based products.

Bioenergy delivers a range of benefits, the Tableland region. Another notable 6 MW. The project was supported by the including employment and economic project was the Select Harvest Carina Clean Energy Finance Corporation.58 development in regional communities, West Cogeneration Plant in Victoria. Two projects were also delivered in NSW. increased energy security, more This 3.1 MW ‘hull-to-energy’ facility is The 1.6 MW Goulburn Bioenergy Project, effective use of waste and a reduction a world-first, using almond hulls and supported by ARENA, allows Southern in greenhouse gas emissions. There shells as an energy source for generating Meats’ existing abattoir facility to break are 222 operating bioenergy plants in electricity and steam. Dubbed Project down effluent and produce biogas. The Australia and an additional 55 projects H E, the plant will generate enough 2 biogas is treated and transferred to two are either under construction or within energy to power the Carina West 800 kW dual fuel generators to produce the feasibility stage of development.56 Processing Facility and irrigation pumps approximately 3800 MWh of electricity at the Carina Orchard.57 The largest bioenergy project delivered per year.59 in 2018 was Maryborough Sugar In Queensland, the Caboolture landfill Orora’s 1.5 MW power project at Botany Factory Limited’s Tableland Sugar Mill now houses a 2.1 MW biogas-fired Mill converts waste-water into 12 million in Queensland. The $75 million plant will generator on site, delivering electricity kWh of renewable energy per year for use sugarcane fibre, known as bagasse, to the grid. The Caboolture generator the company through the use of an to produce up to 24 MW of electricity is one of four being delivered by LGI at anaerobic digester.60 Heat from the – enough to power 28,000 homes in landfill sites across Queensland, totalling engine is also used to preheat water in

LARGEST BIOENERGY PROJECTS

TECHNOLOGY STATE OWNER LOCATION COMMISSION YEAR CAPACITY (MW)

Multi-fuel cogeneration WA Worsley Alumina Refinery Collie 2017 114

Bagasse cogeneration QLD Sucrogen Pioneer Mill 2005 68

Black liquor VIC Australian Paper Maryvale 1976 - 1989 54.5

Bagasse cogeneration QLD Sucrogen Invicta 1976 - 1996 50.5

Bagasse cogeneration QLD Mackay Sugar Racecourse 2013 38

Bagasse cogeneration NSW Cape Byron Management Broadwater 2008 38

56 Bioenergy Australia, media release, Bioenergy - State of the Nation Report has launched, 4 December 2018, https://www.bioenergyaustralia.org.au/news/15154/ 57 Select Harvests, Our Projects, http://selectharvests.com.au/our-projects/ 58 Clean Energy Finance Corporation, media release, CEFC commits $10 million for Landfill Gas Industries landfill energy expansion, 10 July 2015, https://www.cefc.com.au/media/files/cefc-commits-10-million-for-landfill-gas-industries-landfill-energy-expansion/ 59 Australian Renewable Energy Agency, media release, Goulburn abattoir powering itself using bioenergy, 12 April 2018, https://arena.gov.au/ news/goulburn-abattoir-powering-using-bioenergy/ 60 P Brescia, Australian Printer, Orora turning waste into power, 23 July 2018, https://www.australianprinter.com.au/News/21310,orora-turning- waste-into-power.aspx

52 7.1% 1.5% of total clean of total Australian energy generated in electricity generated Australia in 2018 in 2018

the mill, meaning that 90 per cent BIOENERGY PROJECTS COMPLETED IN 2018 of the energy used in the process is captured and reused. PROJECT STATE INSTALLED FUEL SOURCE CAPACITY In WA, Phoenix Energy and Macquarie (MW) Capital will deliver Australia’s first waste- to-energy plant. When complete, the Tableland Sugar Mill QLD 24.0 Bagasse Kwinana plant will divert up to half of Select Harvest Carina West VIC 3.1 Landfill gas the residential waste in the Perth metro Cogeneration Plant area from landfill sites. The facility will Caboolture Landfill QLD 2.1 Food processing waste generate enough electricity to power up to 50,000 households and is supported Goulburn Bioenergy Project NSW 1.6 Food processing waste by a 20-year waste supply agreement Orora Botany Mill NSW 1.5 Waste from paper with eight local governments. Power Station 1 processing

BIOENERGY PRODUCTION BY STATE, 2018 (GWh)

Queensland 1389 New South Wales 1076 Victoria 677 Western Australia 133 South Australia 106 Tasmania 31

Total production 3412 GWh

52 53 TECHNOLOGY PROFILES BATTERY STORAGE

The number of battery storage projects continues to grow across the country as technologies develop and the availability, functionality and cost of many forms of energy storage technology improves.

Batteries are supporting the increased The role of batteries in reducing 30% uptake of renewable energy while network demand and lowering costs also delivering increased reliability for residential consumers was also Australia’s expected and security to the grid. By the end backed by governments in 2018. The share of the global of 2018, the 100 MW (129 MWh) South Australian Government was household battery Hornsdale Power Reserve – famously the first to introduce a $100 million market at the end delivered in less than 100 days in home battery scheme. The scheme of 2019 2017 by Tesla – was still the largest includes a rebate and a low interest in the world, and a growing number loan option, financed by the Clean of industrial-sized batteries were Energy Finance Corporation, to help completed across Australia. These households pay for the balance of included the 30 MWh Ballarat Energy the battery and new solar panels $100M Storage System funded by the if required. Those receiving energy home battery scheme Victorian Government and ARENA; bill concessions are eligible for a introduced by the the 30 MW/8 MWh Dalrymple Energy higher subsidy, ensuring low-income South Australian Storage for Commercial Renewable households are supported to access Government Integration in South Australia; the the scheme. 25 MW/50 MWh Gannawarra Energy In November 2018, Federal Labor Storage System, which was retrofitted announced that it will fund a to an existing solar farm; and the Household Battery Program to support 5 MW Alice Springs Battery Energy 100,000 new battery installations if Storage System funded through 1 M it is elected in 2019. It has a target of government-owned corporation Federal Labor’s target 1 million households with batteries Territory Generation. for the number of by 2025. The $200 million program households with The benefits of utility-scale batteries will provide a rebate for eligible batteries by 2025 were clearly demonstrated by the battery systems, at a rate of $500 per Hornsdale Power Reserve in 2018, KWh of battery capacity, capped at which was found to have reduced $2000, for households with a gross frequency control ancillary services annual income less than $180,000. costs by up to $50 million. These cost In addition, Labor will provide $10 reductions could be even greater million over four years to boost the if the rules of the National Electricity Clean Energy Regulator’s auditing and Market are changed to support fast inspection regime and an additional frequency response.

61 Bloomberg New Energy Finance, Australia to be largest residential storage market in 2019, 22 January 2019, https://about.bnef.com/blog/ australia-largest-residential-storage-market-2019/

54 $10 million Clean Energy Training Fund to support the training of solar and battery installers and energy management system professionals. All this government support is expected to result in the number of Australian households with batteries tripling to 70,000 in 2019, which means that Australia would account for 30 per cent of the global household battery market by the end of the year.61 The Battery Safety Guide, developed by the Clean Energy Council with a number of other industry groups, recognises the need to safely manage this growing industry. The guide provides a minimum level of electrical safety criteria for lithium-based battery energy storage equipment. It is supported by the Clean Energy Council’s Battery Assurance Program, which provides consumers with a list of energy storage devices that meet industry best practice standards.

Image: Hornsdale Power Reserve, South Australia

54 55 TECHNOLOGY PROFILES HYDRO AND PUMPED HYDRO

Hydro has traditionally been the workhorse of renewable energy generation in Australia, delivering reliable energy since the early 20th century and acting as a perfect complement to growing levels of wind and solar. Hydro had a strong year in 2018, with output over 3600 GWh higher than the previous year.

Hydro remained the largest generator generation and 350,000 MWh of 17,000 of renewable electricity in 2018, large-scale energy storage. Tasmania’s providing 35.2 per cent (17,002 GWh). Battery of the Nation initiative could GWh of electricity However, wind energy was hot on its double the state’s renewable energy generated by hydro heels at 33.5 per cent (16,171 GWh). capacity. It will involve repurposing in 2018 Plans to expand and modernise both existing hydropower infrastructure, the Snowy and Tasmanian hydro including adding pumped hydro, schemes, plus new investment by taking full advantage of Tasmania’s government and private investors unmatched wind resource and 50% in pumped hydro, will see hydro’s developing more interconnection. importance continue as costs fall and increase in generation Progress towards the development Australia extends its renewable energy capacity to be provided of these significant projects was ambitions to meet global emissions by Snowy 2.0 made in 2018. In March, the Federal reduction obligations. Government announced that it would Snowy 2.0 would increase the spend $6 billion to purchase the share generation capacity of the Snowy of Snowy Hydro owned by Victoria Hydro Scheme by 50 per cent, with an and NSW, giving it greater control of 100% additional 2000 MW of on-demand the proposed Snowy 2.0 expansion. increase in capacity to be provided by the Battery of the HYDRO POWER’S CONTRIBUTION TO AUSTRALIAN Nation Plan ELECTRICITY GENERATION

YEAR GENERATION CONTRIBUTION TO CONTRIBUTION TO (GWh) RENEWABLES TOTAL ELECTRICITY 2013 19,243 55.4% 8.2%

2014 14,555 45.9% 6.2%

2015 14,046 40.1% 5.9%

2016 17,747 42.3% 7.3%

2017 13,331 34.6% 5.9%

2018 17,002 35.2% 7.5%

62 Snowy Hydro, media release, Snowy 2.0 approved by the Board, 12 December 2018, https://www.snowyhydro.com.au/news/news_ snowy2approval/ 63 Snowy Hydro, media release, Snowy Hydro welcomes planning approval for Snowy 2.0 exploratory works, 11 February 2019, https://www.snowyhydro.com.au/news/snowy-hydro-welcomes-planning-approval-for-snowy-2-0-exploratory-works/ 64 E Laschon, ABC News, Snowy 2.0 project given funds and approval for early work phase by Federal Government, 26 February 2019, https://www.abc.net.au/news/2019-02-26/snowy-2.0-project-approved-for-early-works-stage/10848412

56 35.2% 7.5% of total clean of total Australian energy generated in electricity generated Australia in 2018 in 2018

After two years of testing the project’s Snowy Hydro also signed long- across WaterNSW assets that together financial and geotechnical feasibility, term contracts worth 888 MW with had capacity of more than 7000 MW. the Snowy Hydro board gave the eight NSW and Victorian wind and In Tasmania, the Battery of the official go-ahead for the 2000 MW solar providers that will allow it to Nation project continues to inch closer expansion to proceed in December.62 provide wholesale prices to its retail to reality, with 14 sites examined It also announced the preferred customers of less than $70 a MWh by Hydro Tasmania for pumped construction, engineering and – a price considerably below the cost hydro capability.66 The pumped hydropower companies to help deliver of electricity from a new coal-fired hydro developments would run in the project and obtained planning power plant. Its Renewable Energy conjunction with wind power, which approval from the NSW Government Procurement Program saw more than would see water pumped uphill at for exploratory works.63 The final hurdle 17,600 MW of projects submitted times when demand is low and then for the project was securing the official through the process.65 released to produce electricity at peak green light from the company’s major The NSW Government is also periods.67 ARENA has supported the shareholder – the Federal Government. committed to extending the role initiative with up to $5 million funding The government announced in of pumped hydro across the state, for feasibility studies, which is being February 2019 that it would provide releasing a roadmap that identified matched by Hydro Tasmania. $1.38 billion to allow Snowy 2.0 24 short-listed pumped hydro projects to proceed.64

2013 2014 2015 2016 2017 2018

Contribution to renewables Contribution to total electricity

65 Snowy Hydro, media release, Snowy Hydro signs game-changing deals, 1 November 2018, https://www.snowyhydro.com.au/news/shl_deals/ 66 Hydro Tasmania, media release, West Coast pumped hydro opportunity, 4 October 2018, https://www.hydro.com.au/news/media- releases/2018/10/08/west-coast-pumped-hydro-opportunity 67 Hydro Tasmania, media release, Price is right with hydro, 11 September 2018, https://www.hydro.com.au/news/media-releases/2018/09/11/ price-is-right-with-hydro

56 57 TECHNOLOGY PROFILES SOLAR HOUSEHOLD AND COMMERCIAL SYSTEMS UP TO 100 KW

Rooftop solar backed up a record year in 2017 with an even better one in 2018, as the sector achieved the highest ever S number of installations in every state except Tasmania.68

5 1.5 GW additional solar systems of capacity added nationally installed every hour in 2018 through rooftop solar

There were 218,19569 rooftop solar components were measured to fit inside installations in 2018, 43,599 more than a small elevator and carried manually the previous year. That’s an additional to the roof. With an average 60 per cent 838 systems every week – or five systems reduction in average daily electricity an hour. Around 1.5 GW of capacity use,70 the effort was worth it. was added nationally, taking total The industry continued to strengthen national rooftop solar capacity to more its focus on quality and best practice. than 8.1 GW. More than 200 companies have now Small-scale solar contributed a fifth been accepted into the Clean Energy (19.6 per cent) of total renewable energy Council’s Approved Solar Retailer generation, third behind hydro (35.2 per program, following strong growth in cent) and wind (33.5 per cent). Rooftop 2018. Companies must demonstrate solar delivered 4.2 per cent of Australia’s their commitment to responsible sales total generation in 2018. and marketing, offer five-year whole-of- system warranties and use Clean Energy By December, 2 million households – Council accredited installers to qualify for one in five – were enjoying the benefits the program, which is designed to make of rooftop solar. Six of the top ten solar it easier for consumers to choose postcodes were in Queensland, with a reputable company. the remaining four in Western Australia (three) and Victoria (one). With the record amount of solar being installed, the number of accredited solar Commercial systems also gained in installers grew to 5864 – up almost CASE STUDY popularity, with new locations inspiring 1000 since 2017. The average system HERITAGE AND innovative system designs. Todae size also increased, from 6.39 kW to 7.13 INNOVATION COMBINE Solar installed a 66 kW system on a kW, reflecting the falling cost of systems 45° pyramid roof, 34 storeys above the TO CREATE WORLD’S overall and the growing number of small- Sydney CBD at ISPT’s Pitt Street building. FIRST SOLAR- to-medium businesses installing solar. Without access to a crane, all the POWERED TRAIN

68 Sunwiz Consulting, 2018 - Australian Solar’s record-smashing year. In eye-watering charts, 31 January 2019, http://www.sunwiz.com.au/index.php/2012-06-26-00-47-40/73- newsletter/441-2018-australian-solar’s-record-smashing-year-in-eye-watering-charts.html 69 The 2018 numbers are based on STC creation up to 31 December 2018 and then adjusted for lags in audit invalidation and then upwards based on historical patterns that 8 per cent of installations create STCs in the subsequent year to installation. 70 Todae Solar, media release, Todae Solar named finalist in 2018 Design and Installation Awards, 14 September 2018, https://www.todaesolar.com.au/resources/news/todae-solar- named-finalist-in-2018-design-and-installation-awards/

58 19.6% 4.2% of total clean of total Australian energy generated in electricity generated Australia in 2018 in 2018

Image: Byron Bay Solar Train, New South Wales

Seventy years ago, two 600 class rail motors powered by solar to create the tourists and locals along a 3 km stretch sets were built at the Chullora Railway world’s first solar-powered train. between North Beach Station in Sunrise Workshops in Sydney, using aluminium Beach and the Byron Beach platform in Curved solar panels were fitted to the aircraft technology developed during the town’s centre. roof of both carriages, generating up the Second World War, to produce a high to 6.5 kW of power to charge the train’s The service has so far generated 58,210 performance yet lightweight train. lithium-ion battery bank. A 30 kW kWh more energy than it needs, which Today, this history of innovation array on the storage shed roof provides is exported to the grid via local green continues, thanks to a group of additional back up, while the train’s energy supplier Enova. passionate rail enthusiasts from Byron braking system turns the traction motors The project earned a Judges’ Bay and Lismore-based solar installation into generators to recharge. Honourable Mention in last year’s company, Nickel Energy. Together, they Since commencing operations in Clean Energy Council Solar Design and replaced the heritage train’s traditional December 2017, the Byron Bay Railway Installation Awards as a pioneering diesel engine with electric traction Company has carried more than 90,000 example of low emissions transport.

58 59 TECHNOLOGY PROFILES SOLAR HOUSEHOLD AND COMMERCIAL SYSTEMS UP TO 100 KW

TOP SOLAR POSTCODE IN EACH STATE BY NUMBER OF INSTALLATIONS

QLD 4670 Bundaberg NT 12,620 installations 0870 47,510 kW capacity Alice Springs 1974 installations 10,617 kW capacity

NSW 2480 Lismore 6320 installations 22,867 kW capacity

WA 6210 ACT Mandurah 2615 12,276 installations Macgregor 37,315 kW capacity 2712 installations 9408 kW capacity

SA VIC TAS 5162 3977 7250 Morphett Vale Cranbourne Launceston 5326 installations 7936 installations 2829 installations 17,057 kW capacity 28,453 kW capacity 11,386 kW capacity

Image: Northcote solar rooftops, Victoria

60 TOP TEN SOLAR POSTCODES IN AUSTRALIA BY NUMBER OF INSTALLATIONS

1 BUNDABERG QLD 4670 12,620 installations 47,510 kW capacity 2  MANDURAH WA 6210 12,276 installations 37,315 kW capacity 3 HERVEY BAY QLD 4655 11,387 installations 39,674 kW capacity

4 CALOUNDRA QLD 4551 9956 installations 32,177 kW capacity 5 TOOWOOMBA QLD 4350 9386 installations 36,147 kW capacity 6  WANGARA AND WANNEROO WA 6065 9350 installations 37,247 kW capacity 7 NERANG AND CARRARA QLD 4211 8208 installations 31,667 kW capacity 8  MACKAY QLD 4740 8091 installations 38,194 kW capacity 9 CRANBOURNE VIC 3977 7936 installations 28,453 kW capacity 10  ARMADALE WA 6112 7923 installations 29,943 kW capacity

60 61 TECHNOLOGY PROFILES SOLAR HOUSEHOLD AND COMMERCIAL SYSTEMS UP TO 100 KW (CONTINUED)

ANNUAL SOLAR PV INSTALLATIONS71

400

350

300

250

200

150

100

50 Number of solar PV systems installed annually (‘000) 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year

INSTALLATION ACT NSW NT QLD SA TAS VIC WA NATIONAL YEAR

2010 2323 69,988 637 48,697 16,705 1889 35,676 22,293 198,208

2011 6860 80,272 401 95,303 63,553 2475 60,214 51,667 360,745

2012 1522 53,961 513 130,252 41,851 6364 66,204 42,653 343,320

2013 2411 33,998 1024 71,197 29,187 7658 33,332 21,600 200,407

2014 1225 37,210 1026 57,748 15,166 4207 40,061 23,496 180,139

2015 1066 33,477 1197 39,507 12,081 2020 31,345 20,797 141,490

2016 1001 29,495 1745 34,422 12,604 2487 26,724 24,199 132,677

2017 1944 43,113 1948 46,313 16,172 2389 31,327 31,390 174,596

2018* 3104 58,324 2338 54,201 21,322 2556 43,037 33,315 218,195

TOTAL 22,671 460,116 11,392 602,192 245,714 33,796 381,517 285,607 2,043,003

* 2018 numbers are based on STC creation up to 31 December and then adjusted for lags in audit invalidation and then upwards based on historical patterns that 8 per cent of installations create STCs in the subsequent year to installation.

71 Clean Energy Regulator, Green Energy Markets

62 ANNUAL INSTALLED CAPACITY OF SOLAR PV (MW)72

1600

1400

1200

1000

800

MW installedMW 600

400

200

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year

INSTALLATION ACT NSW NT QLD SA TAS VIC WA NATIONAL YEAR

2010 4.66 153.87 1.49 92.37 33.23 3.02 58.96 42.15 389.75

2011 15.86 196.52 1.80 225.19 163.52 5.91 140.41 123.01 872.24

2012 4.64 144.98 2.29 418.41 138.04 20.26 207.58 99.55 1035.75

2013 9.83 134.36 5.05 268.87 141.40 31.50 131.61 69.56 792.19

2014 4.51 172.35 6.12 248.79 82.54 18.96 171.70 95.30 800.26

2015 5.06 177.08 8.64 192.76 66.64 9.53 149.98 96.24 705.92

2016 6.21 167.35 12.70 199.53 77.67 11.84 144.46 128.05 747.82

2017 11.00 262.85 15.26 306.06 115.22 14.53 205.20 186.24 1116.37

2018** 21.40 410.47 19.69 401.04 168.90 18.03 305.41 210.82 1555.75

TOTAL 84.89 1845.72 74.63 2383.80 1008.44 135.61 1530.53 1069.21 8132.83

** 2018 numbers are based on STC creation up to 31 December and then adjusted for lags in audit invalidation and then upwards based on historical patterns that 8 per cent of capacity create STCs in the subsequent year to installation.

72 Clean Energy Regulator, Green Energy Markets

62 63 64 TOTAL NUMBEROFACCREDITED INSTALLERS ANDDESIGNERS SOLAR TECHNOLOGY PROFILES 0812 1712 91 1323 2018 0718 66 1085 2017 2016 05964 8 119851 998 1151 384 44 916 2015 049844 908 2014 2013 02984 1 3112 860103 120 650 28 1122 1391 514 48 948 2012 2011 2010 YEAR Number of installers 6000 4000 5000 3000 2000 1000 0 NSW 951 894 1034 879 2010 HOUSEHOLD AND COMMERCIAL SYSTEMS UP TO 100 KW (CONTINUED) KW TO UP 100 SYSTEMS COMMERCIAL AND HOUSEHOLD ACT 6451188 465 56 44 3531 53 46 2011 WA 612 401 439 414 2012 L I NT VIC QLD 1571 341059 1354 1263 361093 1336 1710 22 1004 1187 7 754 675 2013 3681 1316 974 1075 Year 2014 72 70 47 41 16 2015 SA 653 552 500 490 521 0 4 6 144 604 593 252 2016 TAS 1 5 112 1 7 112 101 0 7 109 137 71 53 45 Intl 7 8 2 2017 TOTAL 5864 4919 4312 4150 4404 4601 4824 4497 3084 2018 NATIONAL AVERAGE SYSTEM SIZE (KW)73

2009 2010 1.34 kW 1.97 kW

2011 2012 2.42 kW 3.02 kW

2013 3.95 kW 2014 4.44 kW

2015 4.99 kW 2016 5.64 kW

2017 6.39 kW

2018 7.13 kW

4573  Clean Energy Regulator,Regulator. Green Energy Markets

64 65 TECHNOLOGY PROFILES SOLAR MEDIUM SCALE: SYSTEMS BETWEEN 100 KW AND 5 MW

Medium-scale solar systems grew by 80 per cent in 2018 as shopping centres, hospitals, schools, commercial buildings and others took back control of their rising electricity costs M and ramped up their focus on sustainability. Cumulative installed capacity of solar in this category went from approximately 128 MW in 2017 to 230 MW in 2018.

Some of the notable medium-scale Creative design solutions are also CASE STUDY systems installed or commencing emerging in this category. For SOLAR SOLUTION installation in 2018 include a 2.2 example, Australia’s first modular REDUCES REMOTE MW system at the Sydney Markets, and scalable floating solar PV COMMUNITY’S RELIANCE a 500 kW system at the Willinga system was installed by Suntrix on ON DIESEL Park Equestrian Centre in NSW, a an overflow dam at the East 159 kW installation at AccorHotels’ Lismore Sewage Treatment Plant in From a city dweller’s perspective, Novotel Barossa Valley, a 2.8 MW 2018. The 99 kW system will meet it doesn’t get much more remote system across two sites of Jacob’s about 11 per cent of the site’s than the indigenous community Creek winery and more than 11 MW annual electricity needs and there of Lockhart River in Far North of commercial solar across five of are plans to expand it to 400 kW. Queensland – a lazy 17-hour drive Vicinity Centres’ shopping north of Cairns. complexes in Western Australia and Like many other remote South Australia. communities across Australia,

74 Lockhart River relies on a small CUMULATIVE INSTALLED CAPACITY (MW) isolated power station fuelled by 240 diesel for its electricity. In an attempt to reduce diesel 220 consumption and operational costs, 200 Energy Queensland partnered with the Queensland Government 180 to install 200 kW of solar PV on 160 government and community buildings in the town. 140 Solar now makes up 10 per cent of 120 the community’s power supply and has reduced diesel use by 75,000 100 litres per year. These cost savings

Installed capacity (MW) 80 are redirected to benefit community residents, with eligible households 60 receiving $100 every year for the next 20 years. 40 The Lockhart River Solar Project 20 won the Innovation Award at the 0 2018 Clean Energy Council Awards 2012 2013 2014 2015 2016 2017 2018 in August. Year

74 Clean Energy Regulator, Green Energy Markets

66 0.8% 0.2% of total clean of total Australian energy generated in electricity generated Australia in 2018 in 2018

Image: Sydney Markets, New South Wales

CASE STUDY AWARD-WINNING SOLAR POWERS AUSTRALIA’S BIGGEST WHOLESALE MARKET

As the nation’s largest wholesale fruit, The installation earned installers The Chair of Sydney Markets, John vegetable and flower market, Sydney Jarrod Shepherd and Matthew Linney Pearson, said that the site has Markets is used to operating on a from Autonomous Energy a 2018 capacity to more than triple the grand scale. Clean Energy Council Solar Design and generation of the system in the future Installation Award in the over 240 kW to further meet its energy needs. And now the 43-hectare site in category. In addition to the massive Flemington also houses Australia’s Medium-scale systems (between scale of the installation, it included largest private sector rooftop solar 100 kW and 5 MW) are on the rise in innovative solutions such as the use of set up, with an expansive 8594 solar Australia, with more than 100 MW reflective paint to reduce heat loads panels capable of generating more installed in 2018. on the building, which is particularly than 3 MW of electricity. The $8.9 important in areas that mostly contain With a strong history in sustainability, million investment means that solar cool rooms. particularly in the area of waste now provides 11 per cent of Sydney management, Sydney Markets is Markets’ annual power consumption. getting closer to its goal of being Australia’s greenest food market.

67 TECHNOLOGY PROFILES SOLAR LARGE SCALE: SYSTEMS LARGER THAN 5 MW

Large-scale solar officially announced its arrival as a genuine renewable energy contender in 2018, with 28 projects adding 1442 MW of new capacity. L Queensland led the way with 14 new solar farms commissioned in 2018.

Large-scale solar had a breakout The sector is experiencing some 59 year in 2018, with the amount of challenges as the market adjusts large-scale solar projects new capacity installed more than to the speed and scale of its under construction or 14 times higher than the sector’s expansion. Leading engineering financially committed at previous best year. The Renewable firm RCR Tomlinson was placed the end of 2018 Energy Target, the decreasing cost into voluntary administration in of technology, corporate power November, after the structure purchase agreements (PPAs) and of several key contracts left it some assistance from ARENA were financially exposed to delays in the main drivers of this success. connecting to the power grid.76 Grid connection issues – including The three largest solar farms 68% delays, rule changes and network of all renewable commissioned in 2018 were capacity – remain a key issue, as energy projects under Neoen’s Coleambally Solar Farm industry and regulators navigate construction or financially (150 MW) in south-west NSW, the new territory to meet investment committed at the Darling Downs Solar Farm (138 demand. end of 2018 were MW) and the Clare Solar Farm in large-scale solar Port Augusta (128 MW). As of 31 December 2018, there were 59 large-scale solar projects The Coleambally project will under construction or financially generate approximately 380,000 committed across Australia, 34 MWh of electricity into the national per cent of them in Queensland. power grid each year, which is Those under construction range in 52,000 enough to power approximately size from the 5 MW Moyall Solar average homes can be 52,000 average homes. Tracking Farm in South Australia to the powered by the 150 MW technology ensures that 349 MW Limondale Solar Farm in Coleambally Solar Farm Coleambally’s production peak Balranald, NSW. Of the 87 large- in NSW lasts from around 8.30am until scale renewable energy projects after 4pm, maximising its output. under construction or financially It’s supported by a 12-year PPA with committed at the end of 2018, over energy retailer EnergyAustralia, two thirds were large-scale solar. which will take about 70 per cent of the solar farm’s energy output. The remainder, including large-scale certificates, will be sold directly to the market.75

75 G Parkinson, RenewEconomy, Australia’s biggest solar farm at Coleambally sets new production records, 23 November 2018, https://reneweconomy.com.au/australias-biggest-solar-farm-at-coleambally-sets-new-production-records-67215/ 76 S Vorrath, RenewEconomy, RCR administrator blames solar for company’s collapse, 29 November 2018, https://reneweconomy.com.au/rcr-administrator-blames-solar-for-companys-collapse-78708/ 77 Green Energy Markets, Clean Energy Council database

68 3.9% 0.8% of total clean of total Australian energy generated in electricity generated Australia in 2018 in 2018

LARGE-SCALE SOLAR PLANTS COMMISSIONED IN 201877

PROJECT OWNER STATE INSTALLED INVESTMENT JOBS CAPACITY (A$M) (MW) Coleambally Solar Farm Neoen NSW 150 200 400 Darling Downs Solar Farm APA Group QLD 138 217 200 Clare Solar Farm FRV QLD 128 190 200 Sun Metals Solar Farm Sun Metals QLD 124 199 250 Bannerton Solar Farm Foresight Solar VIC 110 98 N/A Wemen Solar Farm Wirsol Energy VIC 110 110 600 Emerald Solar Park Lighthouse Solar QLD 90 110 200 Hamilton Solar Farm Edify Energy QLD 69 138 325 Whitsunday Solar Farm Edify Energy QLD 69 122.4 200 Parkes Solar Farm Neoen NSW 66 114 80 Gannawarra Solar Farm - Stage 1 Wirsol Energy and Edify Energy VIC 60 100 50 Manildra Solar Farm First Solar NSW 56 109.3 N/A Kidston Solar Project - Stage 1 Genex QLD 50 126 100 Griffith Solar Farm Neoen NSW 36 230 250 Dubbo Solar Hub Neoen NSW 29 55.6 165 Emu Downs Solar Farm APA Group WA 20 47.2 100 Hughenden Solar Farm Overland Sun Farming QLD 20 34.08 100 Swan Hill Solar Farm Impact Investment Group/ VIC 19 36 59 Australian Solar Group Longreach Solar Farm Canadian Solar QLD 17 31 30 Kennedy Energy Park - Solar Windlab and Erusus Energy QLD 15 36 30 Lakeland Solar and Storage Project Conergy QLD 13 42.5 60 Dunblane Solar Farm Ydot Projects QLD 11 N/A N/A Gullen Range Solar Farm New Gullen Range Wind Farm NSW 10 26 70 Northam Solar Farm Carnegie/Lend Lease WA 10 20 30 Brisbane Airport Epho QLD 6 N/A N/A Whyalla Solar Farm - Stage 1 SSE Australia SA 6 N/A 20 Normanton Solar Farm Canadian Solar and Scouller Energy QLD 5 14 20 Peterborough Solar Farm Renew Power Group SA 5 9.5 40

68 69 TECHNOLOGY PROFILES SOLAR LARGE SCALE: SYSTEMS LARGER THAN 5 MW (CONTINUED)

CUMULATIVE INSTALLED CAPACITY (MW)78

1900 1800 1700 1600 1500 1400 1300 1200 1100 1000 900 800 700 Installed capacity (MW) 600 500 400 300 200 100 0 2012 2013 2014 2015 2016 2017 2018 Year

YEAR 2012 2013 2014 2015 2016 2017 2018 CUMULATIVE INSTALLED CAPACITY (MW) 10 10 30 185 275 382 1824

78 Green Energy Markets, Clean Energy Council database

70 TOP FIVE PLANTS BY SIZE79

COLEAMBALLY, NSW Owner: Neoen Commissioned: 2018 150 MW DARLING DOWNS, QLD Owner: APA Group Commissioned: 2018 138 MW CLARE, QLD Owner: FRV Commissioned: 2018 128 MW SUN METALS TOWNSVILLE, QLD Owner: Sun Metals Commissioned: 2018 124 MW BANNERTON, VIC Owner: Foresight Solar Commissioned: 2018 110 MW

Image: White Rock Wind and Solar Farm, New South Wales

79 Green Energy Markets, Clean Energy Council database

70 71 TECHNOLOGY PROFILES WIND POWER

Batteries and large-scale solar may have stolen some of the media spotlight in 2018, but wind remains the cheapest form of new energy to build and a significant contributor to the nation’s electricity generation.

Over 850 MW of wind energy was installed in 2018, making it the best ever year for installed wind farm capacity. AGL’s Macarthur Wind Farm in south-western Victoria remains the nation’s largest at 420 MW – although Goldwind’s 530 MW Stockyard Hill Wind Farm, which is currently under construction, will claim the title once it is completed in 2020. At 270 MW, the Sapphire Wind Farm is the largest wind farm in NSW, followed by Goldwind’s 175 MW White Rock Wind Farm in the New England Tablelands. Of the nine new wind farms commissioned in 2018, five were in Victoria. In early 2019, the Victorian Government approved an 800–1000 MW wind power project proposed for Victoria’s Golden Plains Shire by German company WestWind Energy. At the end of 2018, 24 wind farms with a combined capacity of 5.69 GW were under construction or financially committed nationally, representing more than $8 billion of investment and creating almost 5000 jobs. Victoria led the way, with half of all new wind farms under construction or financially committed.

72 33.5% 7.1% of total clean of total Australian energy generated in electricity generated Australia in 2018 in 2018

WIND FARMS COMMISSIONED IN 2018

PROJECT OWNER STATE CAPACITY (MW)

Sapphire Wind Farm Partners Group and CWP Renewables NSW 270

Mt Emerald Wind Farm RATCH QLD 181

Mt Gellibrand - Stage 1 ACCIONA VIC 138

Bodangora Wind Farm Infigen Energy NSW 113

Salt Creek Wind Farm Tilt Renewables VIC 54

Kennedy Energy Park - Wind Windlab and Erusus Energy QLD 43.5

Kiata Wind Farm Windlab VIC 31

Yaloak South Wind Farm Pacific Hydro VIC 29

Maroona Wind Farm BayWa r.e. VIC 7

Image: Hornsdale Wind Farm, South Australia

73 TECHNOLOGY PROFILES WIND POWER (CONTINUED)

PERCENTAGE OF WIND GENERATION BY STATE80

SA 35.2% 5692 GWh

VIC 28.0% 4528 GWh

QLD TAS 0.9% 141 GWh 6.8% 1093 GWh

NSW 19.3% 3124 GWh

WA 9.9% 1594 GWh

80 Green Energy Markets

74 TOP FIVE PLANTS BY SIZE MACARTHUR, VIC Owner: HRL Morrison and Malakoff Corporation Commissioned: 2012 420 MW SNOWTOWN 2, SA Owner: Tilt Renewables Commissioned: 2014 270 MW SAPPHIRE, NSW Owner: Partners Group and CWP Renewables Commissioned: 2018 270 MW ARARAT, VIC Owner: RES Commissioned: 2017 240 MW COLLGAR, WA Owner: UBS IIF/REST Commissioned: 2012 206 MW

Image: Stockyard Hill Wind Farm, Victoria

74 75 TECHNOLOGY PROFILES WIND POWER (CONTINUED)

CUMULATIVE INSTALLED WIND CAPACITY IN AUSTRALIA81

6000 5500 5000 4500 4000 3500 3000

Megawatts 2500 2000 1500 1000 500 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year

YEAR 2010 2011 2012 2013 2014 2015 2016 2017 2018

CUMULATIVE INSTALLED CAPACITY (MW) 1840.1 2241.5 3009.8 3234.4 3962.1 4181.7 4324.7 4812.2 5678.7

ANNUAL INSTALLED WIND CAPACITY IN AUSTRALIA81

900

800

700

600

500

Megawatts 400

300

200

100

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year

YEAR 2010 2011 2012 2013 2014 2015 2016 2017 2018

CUMULATIVE INSTALLED CAPACITY (MW) 158.7 401.3 768.3 224.6 727.8 219.6 143.0 487.6 866.5

81 Green Energy Markets, Clean Energy Council database Image: Hornsdale Wind Farm , South Australia

76 CASE STUDY BATTERY-BACKED WIND FARM DELIVERS RELIABLE ENERGY TO GREENHOUSE FARMING OPERATION

Reliable and affordable energy is essential for Australian businesses to remain globally competitive, and the Bulgana Green Power Hub proves that battery-backed wind energy is an attractive solution. The power hub, which is currently under construction on 7500 hectares of private freehold sheep grazing country near Stawell in Victoria, will provide more than 750,000 MWh of renewable energy every year. National agri-business Nectar Farms, which adjoins the Bulgana Green Power Hub, has signed a 10-year power purchase agreement to purchase 15 per cent of Bulgana’s capacity, with the remainder being fed into the national grid. Nectar Farms will use the emissions-free energy from Bulgana to expand its hydroponic fruit and vegetables operation, creating more than 1300 jobs in rural Victoria. Developed and operated by French renewable energy company Neoen, with a 15-year support agreement from the Victorian Government, the hub will combine 194 MW of wind with a 20 MW lithium-ion Tesla battery. Its emissions reductions are equivalent to taking 230,000 cars off the road or planting 1.2 million trees, helping the state to deliver on its target of 20 per cent emissions reduction by 2020. The wind farm is due to be completed by the end of 2019.

Image: Hornsdale Wind Farm , South Australia

76 77 TECHNOLOGY PROFILES EMERGING TECHNOLOGIES

HYDROGEN GEOTHERMAL

There was considerable interest opened Australia’s first hydrogen test Commercial-scale geothermal in renewable hydrogen in 2018, facility to test 100 per cent hydrogen technology in the Australian activating significant policy and on existing materials, equipment residential sector took a step forward, investment activity. and work practices in preparation with Alinta Energy announcing plans to commercialise geothermal In August, CSIRO produced a for application to the existing gas heating and cooling – and potentially blueprint for the development of distribution network. Plumbing even hot water – following a a hydrogen industry in Australia. students will be trained as part successful rollout in a major housing In September, ARENA committed of the research. development in the Sydney suburb $22.1 million in funding for 16 In December, the COAG Energy of Blacktown.84 research projects to accelerate its Council agreed to establish a development. dedicated Working Group to support MARINE One of the projects included the development of a competitive hydrogen industry and make $7.5 million for Jemena to build It was a challenging year for marine Australia a major global player in the a 500 kW electrolyser at its facility energy in Australia, after Carnegie market by 2030. The Working Group in western Sydney, which will convert Energy – a flagship company set to solar and wind power into renewable will be chaired by Australia’s Chief develop Australia’s first commercial hydrogen. Scientist, Dr Alan Finkel. wind and tidal energy project The two-year trial – the largest of Federal Labor also announced a in Albany, Western Australia – its kind in Australia – will inject small big commitment to the burgeoning experienced project setbacks and amounts of renewable hydrogen industry in early 2019, earmarking significant financial losses. The into the Sydney gas network to more than $1 billion for research, company took on a number of solar- demonstrate the potential for demonstration and pre-commercial battery hybrid energy projects which renewable hydrogen storage. A deployment of hydrogen it blames for the setbacks. Despite portion of the hydrogen will be used technologies should it win the this, wave energy remains one of for electricity generation, with the 2019 Federal Election. It has the largest untapped renewable resources in Australia.85 remaining stored for use in an onsite earmarked Gladstone in Queensland refuelling station for hydrogen fuel as the hydrogen capital of Australia, 82 cell vehicles. and will establish the National At the end of 2018, Evoenergy and Hydrogen Innovation Hub in the the Canberra Institute of Technology Queensland regional city.83

82 Australian Renewable Energy Agency, Hydrogen to be trialled in NSW gas networks, 22 October 2018, https://arena.gov.au/news/hydrogen-to-be-trialled-in-nsw-gas-networks/ 83 Australian Labor Party, media release, Labor’s national hydrogen plan, 22 January 2019, http://www.billshorten.com.au/labor_s_national_hydrogen_plan_tuesday_22_january_2019 84 S Vorrath, RenewEconomy, Alinta turns to geothermal for sustainable heating and cooling, 22 November 2018, https://reneweconomy.com.au/alinta-turns-to-geothermal-for-sustainable-heating-and-cooling-55901/ 85 G Parkinson, RenewEconomy, Carnegie laments solar-battery blow-outs as it returns focus on wave energy, 3 December 2018, https://reneweconomy.com.au/carnegie-laments-solar-battery-blow-outs-as-it-returns-focus-on-wave-energy-22345/

78 Image: Hydrogen fuel cell

CASE STUDY CLEAN HYDROGEN COULD POWER AUSTRALIA’S NEXT EXPORT BOOM

Hydrogen is the simplest element, to seize the opportunities of this conditions, hydrogen exports could the most plentiful in the universe. emerging industry. be worth $1.7 billion annually and But this common gas is no generate 2800 jobs in Australia by It follows on from ground-breaking lightweight. In fact, both ARENA and 2030. research by CSIRO in August 2018 CSIRO believe that hydrogen could which separated ultra-high purity Renewable hydrogen’s export be the missing element that allows hydrogen from ammonia, blocking potential is also fuelling plans for us to develop an export industry for all other gases. The membrane the massive Asia Renewable Energy renewable energy to one day rival technology developed by CSIRO Hub in north-west WA. The giant liquefied natural gas. paves the way for bulk hydrogen to hybrid wind and solar project aims to The potential of hydrogen is be transported as ammonia using provide cheap energy to the Pilbara’s enormous: it can heat buildings, existing infrastructure and then local manufacturing base and export power vehicles and supply industrial reconverted into hydrogen at the renewable energy to south-east Asia heat – all with little to no emissions. point of use. via a sub-sea cable. The hub’s 7.5 GW of wind turbines and 3.5 GW of In September 2018, ARENA provided If this opportunity is managed solar PV arrays could generate more $22.1 million in funding for 16 properly, low-emissions hydrogen than 40 terawatt hours of energy per research projects to accelerate the produced in Australia could supply annum, which equates to nearly 20 development of renewable hydrogen fuel cell vehicles around the world. per cent of Australia’s total electricity so that Australia is well positioned ARENA says that with the right generation.

78 79 Image: Dubbo Solar Farm, New South Wales

80 YOUR DISTRIBUTION PARTNER

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The Clean Energy Council thanks the following members and industry stakeholders for providing some of the photographs in this report: • ACCIONA • Autonomous Energy • Bright Brewery • Epuron • Genex Power • Goldwind • Hydro Tasmania • Infigen Energy • Neoen Printed by Complete Colour Printing using stock produced from • Nickel Energy 100% Recycled Forest Stewardship Council (FSC) post-consumer • Pacific Hydro waste material, produced carbon neutral. • RES Design by indium design / [email protected] CLEAN ENERGY AUSTRALIA REPORT 2019

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